South Korea probes crypto exchanges for native tokens

This yr, native cryptocurrencies proved to be essentially the most vital trigger that led to the failure of numerous cryptocurrency exchanges and ecosystems; the latest occasion of this was the collapse of the FTX.

The Korea Monetary Intelligence Unit (KoFIU), which is Korea’s authority on monetary issues, took observe of the identical factor when it initiated an investigation into cryptocurrency exchanges in regard to itemizing their very own internally created tokens.

The cryptocurrency change FTX and its 130 affiliated enterprises have simply filed for chapter because of a drop within the value of the FTX Token, the corporate’s in-house token.

An area article states that the aim of KoFIU’s investigation into the matter is to take care of regulatory compliance for the safety of buyers. That is the case even supposing Korean cryptocurrency exchanges are prohibited from releasing native tokens.

Preliminary examinations indicated that each cryptocurrency change working inside South Korea adopted all relevant legal guidelines and laws.

A consultant for the Monetary Companies Fee (FSC) mentioned that “there are nonetheless some uncertainties linked” to in-house token listings. This prompted the FSC to announce preparations to conduct a extra in-depth inquiry.

In line with a report by the regional media outlet Yonhap, Flata Trade is likely one of the key suspects and is now the topic of an investigation because it listed its in-house token, FLAT, in January 2020.

Authorities have mentioned that main exchanges like Upbit and Bithumb are not below investigation; as a substitute, they’d focus their efforts on investigating smaller exchanges.

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