2 years ago
On Monday, a section quality outlet reported that South Korea’s Upbit and Bithumb crypto exchanges are nether probe by the Seoul Southern District Prosecutors Office implicit suspicions concerning lawmaker Kim Nam-kuk’s integer assets.
Officials said they are presently investigating whether Kim utilized insider accusation to get his monolithic integer assets worthy astir $4.5 cardinal and to find retired their origin. As portion of the probe, prosecutors raided Upbit and Bithumb earlier contiguous and seized transaction records and different materials.
Opposition Lawmaker’s Scandal
The probe has caused a stir, with galore questioning the root of Kim’s integer assets. And however helium managed to accumulate specified a important magnitude of money. Accusers person alleged that Kim, a first-term lawmaker, owns astir 800,000 Wemix coins.
The study deemed this magnitude inconsistent with his frugal image. Additionally, Kim faces accusations of trading cryptocurrency assets portion attending astatine slightest 2 meetings of the judiciary committee of the National Assembly successful May and November of past year.
Notably, Upbit and Bithumb are 2 large South Korea’s largest crypto exchanges. But this is not the archetypal clip they person travel nether scrutiny.
In 2018, Upbit was investigated implicit allegations of fraud aft it was accused of inflating its equilibrium sheets. However, the speech was aboriginal cleared of immoderate wrongdoing.
Bithumb, connected the different hand, was hacked doubly successful 2018. The hack resulted successful the nonaccomplishment of millions of dollars worthy of crypto.
South Korea Stance On Crypto
South Korea has since been a large subordinate successful the satellite of crypto. However, the state has been taking a much cautious attack toward the regularisation of integer assets successful caller years.
In February, South Korea’s Financial Services Commission (FSC) announced caller rules for cryptocurrencies. The rules required each virtual plus work providers to registry with the bureau and comply with strict anti-money laundering regulations. The determination was seen arsenic a measurement toward greater regulatory clarity and oversight successful the crypto industry.
Despite the tighter regulations, South Korea remains a hub for cryptocurrency activity, with immoderate of the world’s largest crypto exchanges, specified arsenic Bithumb and Upbit, based successful the country. However, the authorities has besides been cracking down connected amerciable crypto-related activities, including fraud and wealth laundering.
It is worthy noting the caller probe into Upbit and Bithumb is apt to person an interaction connected the country’s cryptocurrency industry. This is due to the fact that the 2 exchanges relationship for a important information of the country’s trading volume.
The result of the probe could besides service arsenic a informing to different exchanges to beryllium vigilant and comply with regulations to forestall fraudulent activities.
In summation to regulatory efforts, South Korea is besides exploring the imaginable of blockchain exertion to amended assorted sectors, specified arsenic finance, healthcare, and logistics. The state has launched respective blockchain initiatives and projects, including a government-backed aviator program to way beef exports utilizing blockchain technology.
While South Korea remains a cardinal subordinate successful the planetary crypto landscape, it is besides taking a measured and cautious attack to regulating the manufacture to guarantee capitalist extortion and forestall illicit activities.
Regardless of the accrued regulations successful the crypto industry, the planetary crypto market has maintained composure. Over the past 24 hours, the planetary crypto marketplace capitalization has surged astir 2% with a worth looking to reclaim the antecedently recorded $1.2 trillion.
Featured representation from, Chart from TradingView.com
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