[Photo by Kim Ho-young]
Cryptocurrency exchange staff caught for trading coins on their platforms would cost the operator a fine of up to 100 million won ($90,000) and business permit, according to the new regulations under making by Seoul authorities.
The punitive measures against violation of the new cryptocurrency trading rules would range from up to a 100-million-won fine to correction order, business suspension and even termination of trading license, according to an information session held by the Korean Financial Services Commission’s Financial Intelligence Unit (FIU) last week.
The Korean financial authority earlier last month warned it would ban crypto exchange employees from trading at their exchanges to prevent cross trading and price manipulation.
The warning comes ahead of the introduction of revised financial transaction report law, which mandates crypto currency traders to allow financial transactions only through bank accounts established under real legal name. With the revised rule taking effect on Sept. 25, crypto currency exchanges have until the day before to be certified for Information Security Management System and get bank’s verification on the name of transaction account holders.
Currently, only four exchanges - Upbit, Bithumb, Korbit and Coinone – have traders cleared by banks for crypto asset trading. As many as 50 smaller exchanges are having difficulty in finding banks to trade with as lenders are reluctant to add more exchange partners since all the risk would lie on them due to lack of state regulator on crypto trading.
By Yoon Won-seop and Cho Jeehyun
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]