Paycoin, whose token is used in South Korea for payments, was ordered to secure a bank partner or have its services suspended by February 5—it chose the former.
Both the Financial Services Commission (FSC) and the Financial Intelligence Unit (FIU) are pushing for the listing of new tokens to be removed from the purview of digital asset exchanges.
The Financial Services Commission supports a new bill that will require exchanges to compensate users if they halt withdrawals as they’ve been doing amid the FTX collapse.
The Financial Services Commission is hinging its argument on the grounds that digital assets is an umbrella term covering virtual currencies and CBDC and should not be used interchangeably.
South Korea’s Financial Services Commission is investigating exchanges that have listed their native tokens, with Flata exchange as the main target, following FTX’s FTT collapse this month.
If the law scale through the legislative processes, it could bring the penalties for digital asset fraud to be at par with traditional finance fraud in the country.
South Korea is going hard on its efforts to monitor the digital asset industry as money laundering cases become rampant, with the Financial Services Commission saying it will be on the lookout for 'crypto' whales.
It appears that the FSC is making a U-turn and has announced that it will promote the use of digital currency and safeguard the interest of investors.
In a letter to South Korea's National Assembly, Daniel Shin said that local law enforcement agencies are investigating him for his role in Terra's collapse in May, and his testimony could be tainted.
South Korea's ambition to regulate the digital asset ecosystem is gaining ground as it looks to draft new legislation for supervising security tokens, which it hopes to be finalized before yearend.
South Korea sees a nearly 10% rise in illegal forex transactions tied with digital assets this 2022, forcing authorities to widen the crackdown on the market that led to the arrest of 16 individuals.