[Photo by Kim Ho-young]
Korea’s prosecution has dismissed the illegal gambling charge against CoinOne, the country’s leading crypto currency exchange accused of facilitating the use of digital coins for speculative trading.
CoinOne, its CEO Cha Myung-hoon and another senior executive, whose name is undisclosed, had been under investigation for margin trading service provided to the crypto currency exchange’s users from November 2016 to December 2017.
Margin trading refers to the practice of using money borrowed from the broker to purchase financial products. The service users bet on the future price change to make profits. Due to the huge fluctuations in crypto currency prices, margin traders can make big profits but they can also lose big.
The Korean police judged CoinOne’s margin trading service illegal as it was not granted a permit from the authorities and referred the case to the prosecution in June 2018. The company was also charged for violating the consumer credit service law.
The crypto exchange and its executives were acquitted of all charges after three years of review.
The prosecution said it cannot disclose the reasons for the acquittal.
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