South Korean regulator considers class action in response to ‘unfair crypto trading’
In response to reports of unfair cryptocurrency trading practices in South Korea, the country’s financial regulator is considering a class-action lawsuit to protect investors. Unfair practices involve various deceptive, unethical or fraudulent approaches to achieve success.
Such practices may include, but are not limited to, false gift offers or free prizes, misrepresentation of services, and failure to comply with security standards. The regulators aim to end all these practices to guarantee the safety of crypto investors and users.
Class Action System Against Unfair Crypto Trading Practices
According to a report in local South Korean mediathe class action became necessary for the nation’s officials after the incident with Terra in May 2022.
Several complaints have reached the Financial Services Commission (FSC) regarding the losses incurred by investors due to unfair crypto trading practices in the country. These practices include insider trading, market manipulation, wash tradeand other forms of fraud.
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A South Korean daily obtained information about the proposed plan of the FSC to implement a class action system. The officials noted that the class action law would apply to all illegal activities going on in the country. As such, the securities sector and the field of digital currencies are no exception.
The report also cited that the FSC does not consider digital currencies as finance. Meanwhile, no one can say whether the regulators’ point of view will prevail soon.
Information on bribes for token listing
The report reveals that trading platforms allegedly display certain digital assets to collect bribes in South Korea. As such, certain officials band together extend probes channeled into bribes in digital currency to put an end to such practices. However, this will only come into effect if more evidence emerges.
Officials are investigating the cases surrounding this practice, with several ongoing developments. A notable example of such a development is the arrest of a Coinone employee. The report said the accused received a $1.5 million bribe to list 25 digital assets on the Coinone trading platform.
Furthermore, the South Korean market has been through difficult times due to several thefts and fraud cases in the country.
The nation had recorded a number of hacks, such as GDAC, which lost about $13 million to hackers at the time. In another report, Bithumb was investigated by the police for allegedly manipulating the prices of listed digital assets.
According to FSC’s class action lawsuit, the commission has yet to provide details on how the proposed lawsuit would work or when it might be implemented. However, the regulator will continue to monitor the situation closely and take measures necessary to protect investors.
Featured image from Pixabay and chart from Tradingview
