BlocksInform
South Korea seeks to strengthen regulations to prevent unfair trade practices within the industry. As such, the Financial Services Commission has directed five large crypto exchanges across the country to write off and classify digital assets that have securities-like properties.
The implosion of the tokens of the ancient terra ecosystem was the first domino to fall into a series of other highly publicized collapses. The subsequent bankruptcy of a hedge fund with three capital arrows (3ac) and a host of trades and bankrupt lenders, like the Celsius network, voyager digital, genesis, and ftx have had a considerable impact on the South Korean marketplace.
As a result, country regulators have called for comprehensive cryptography regulations to be put in place to protect investors.
FSC’s Order
According to a local media report, the FSC stated that many tokens listed and traded on existing crypto exchanges could be delisted or transferred to securities companies if proper guidelines were issued.
Daxa - a crypto trading group that represents the largest South Korean companies as upbit, bithumb, coinone, korbit, and gopax – will be responsible for gathering the required input from each business through the Transaction Support Division and providing it to the regulator. The application deadline is February 9.
Unveiling the “Work Plan” for the year, the FSC stressed the need to revamp the regulatory system on “the issuance and distribution of fractional investment items and digital asset securities (security tokens).”
System for monitoring virtual currencies.
The Ministry of Justice in South Korea also revealed plans to develop a crypto-tracking system dubbed – Virtual Currency Tracking System – to tackle money laundering initiatives and recover funds linked to criminal activities. The focus of the country is on monitoring transaction history, extracting transaction data, and verifying the source of funds prior to and after disbursement.
Its deployment is scheduled for the first six months of 2023. The development of the monitoring and analysis system will begin in the second half of the year, according to the Department of South Korea.
Development comes like the Korean police department has many contracts with various national exchanges to prevent blockchain crimes. The police also increased the number of blockchain security experts in order to bolster their investigations.
