South Korea's top financial regulator is joining forces with the country's prosecutors to widen their investigations into domestic crypto exchanges, The Korea Times reported.
As reported in The Korea Times on May 14, 2018, the country's central financial authority, the Financial Services Commision (FSC), wishes to "coordinate" policies about crypto-assets with global regulatory bodies.
Following a request by the Financial Supervisory Service (FSS) and the prosecution to address growing anti-money laundering compliance concerns and possible abuse of cryptocurrencies in money laundering and fraud, the FSC is looking into exchanges' corporate accounts opened in local banks.
Officials recently raided the country's leading crypto exchange UPbit, which is now being investigated by police. But the fact also remains that many accounts in the said exchanges are yet to be converted to real-name accounts. That leads to other small and medium-sized exchanges to continue using corporate accounts for crypto transactions.
One of the modes of widening the net has been done via a collaboration with other countries.
"The whole world is now framing the outline (for cryptocurrency) and therefore (the government) should rather work more on normalization than increasing regulation", Choe Heung-sik, chief of FSS, the agency responsible for this investigation against Upbit, told reporters in February this year. Our latest finding shows that the domestic exchange faked its balance sheets and deceived investors.
What do you think about the current regulatory uncertainty in South Korea?
Meanwhile, the new FSS governor Yoon Suk-heun recently that he will look into easing regulations on domestic cryptocurrency trading, citing that "there are some positive aspects to cryptocurrencies".
Adding to these thoughts is Kim Yong-beom, Vice Chairman of the FSC, who believes that the steady development of blockchain will change traditional banking and financial industries concerning accessibility and efficiency and that the commision is evaluating cryptocurrencies as being a legitimate payment tool.