Jul 1, 2022

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

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

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

Sung Il-Jong, a member of the House of Representatives from the ruling People's Power Party of South Korea, said that now, amid the collapse of Terra, the country does not have effective leverage on crypto exchanges:

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

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

“We are going to develop close ties with the Department of Justice, prosecutors and police to monitor any illegal activities in the industry and protect the rights of investors.”

Recently, South Korean cryptocurrency exchangesreceived letters from the Seoul police with a request to block the movement of funds on Luna Foundation Guard accounts in connection with theft. A little earlier, the South Korean authorities and the Financial Supervisory Service (FSS) launched an emergency audit of local cryptocurrency exchanges. The purpose of the audit is to clarify whether investors are sufficiently protected from a repeat of the situation that happened with the stablecoin TerraUSD (UST) and its control 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.