‘Unfair Crypto Trading’ Targeted by South Korean Regulators
Financial regulators in South Korea are considering a protocol to file class action lawsuits against what they call “unfair crypto trading.” The system is designed to protect investors, a top priority for officials.
The system is promoted with the idea of protecting investors. This is a process that South Korean officials have long been focused on. The Terra incident in particular has sparked a strong focus on protecting investors.
Kukmin Ilbo managed to obtain an internal report from the Financial Services Commission (FSC), which talked about the proposed plan for a class action system.
The report reads,
“A bill to enact a class action law applicable to general illegal activities, including the securities sector, has been proposed to the National Assembly. We can accept various options, including adding the virtual assets field to this bill.”
Interestingly, the report also stated that the FSC does not view cryptocurrencies as finance. It remains to be seen whether this point of view will be repeated elsewhere.
Expand probe into crypto trading and bribes for token listing
South Korean officials are also working to expand investigations related to token listing bribes if more evidence emerges. According to those in the know, it is common in South Korea for trading platforms to list certain tokens in exchange for bribes.
An investigation into this case is now underway. There have been several developments around this. One such development includes the arrest of a former Coinone employee. The employee accepted 1.5 million in bribes in exchange for listing 25 assets.
The South Korean crypto exchange market is having a busy time
The crypto exchange market in South Korea has gone through a turbulent time. There have been a number of hacks, including GDAC which was hacked for $13 million. Meanwhile, Bithumb was raided by the police in a price manipulation investigation.
In addition, Binance has also entered the country by acquiring a majority stake in the Gopax exchange. Furthermore, Samsung expects to launch its cryptocurrency exchange in 2023.
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