South Korean authorities intend to involve law enforcement agencies in the supervision of stock exchanges

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Officials and representatives of the crypto business agreed to develop rules that protect investors and involve law enforcement agencies in supervising the activities of cryptocurrency exchanges.

Member of the House of Representatives from the ruling PartyPeople's Power of South Korea Sung Il-Jong said that now, against the backdrop of the collapse of Terra, the country has no effective leverage on crypto exchanges:

“When exchanges violate rules, they must be held legally accountable to ensure that the market functions smoothly without any problems.”

The deputy was supported by the deputy chairmanParliamentary Commission on Financial Services Kim So-Young and warned the heads of the cryptocurrency exchanges Upbit, Bithumb, Coinone, Korbit and Gopax present at the meeting about control over their activities by law enforcement agencies:

“We are going to establish close ties with the Ministry of Justice, the prosecutor's office and the police to monitor any illegal activities in the industry and protect the rights of investors.”

Recently, South Korean cryptocurrenciesThe exchanges received letters from the Seoul police asking them to block the movement of funds on Luna Foundation Guard accounts due to theft. A little earlier, the South Korean authorities and the Financial Supervisory Service (FSS) began an emergency audit of local cryptocurrency exchanges. The purpose of the check is to clarify whether investors are sufficiently protected from a repetition of the situation that happened with the stablecoin TerraUSD (UST) and its governing token LUNA. The National Tax Agency of South Korea has imposed
Terraform Labs and its co-founder were fined 100 billion won ($78 million) for tax evasion.