December 5, 2022

South Korean authorities will check the placement of native tokens on exchanges

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1 min.

South Korean authorities will check the placement of native tokens on exchanges

The South Korean Financial Intelligence Unit (KoFIU) has begun investigating cases of local cryptocurrency exchanges listing their own tokens.

According to representatives of the CommissionFinancial Services Commission (FSC), native cryptocurrencies were the biggest contributor to the collapse of numerous exchanges and ecosystems this year. In addition, according to the laws of South Korea, local trading platforms are prohibited from issuing native tokens.

KoFIU assures that it is investigating in the interests of investors. The initial audit showed that all local crypto exchanges carried out legitimate transactions in South Korea.

However, FSC has announced plans for a deeperinvestigation as there are "still some doubts" related to the internal listing of the tokens. One of the prime suspects is the Flata Exchange. Since 2020, the company has been under investigation related to the listing of its own FLAT token.

Major exchanges such as Upbit and Bithumb have already been reviewed by regulators. Now the investigation will focus more on smaller exchanges.

The FSC and the national parliament are currently working on a bill to allow regulators to penalize crypto exchanges for unfair trading.