South Korean Officials Under Investigation for Insider Trading of Cryptocurrencies
The Governor of South Korea’s Financial Supervisory Service (FSS) has confirmed that an investigation into allegations that its staff was involved in insider trading of cryptocurrencies is on-going.
Local South Korean media reported that FSS Governor Choi Heung-sik stated his organization was looking into accusations that its staff had engaged in illegal cryptocurrency trading. The staff members allegedly engaged in the activity prior to the announcements regarding the tightening of cryptocurrency regulation in the country.
“We've acknowledged allegations that an FSS official sold crypto-assets based on insider information before the government’s updated announcement to regulate the market. We are looking into this case.”
Choi’s statement came in response to a query by a South Korean lawmaker at a National Assembly Committee meeting today, who pointed toward evidence that FSS employees had sold their cryptocurrencies just before the government announced new regulatory measures.
The Committee called for a thorough investigation into the matter, and Choi has confirmed that his organization will announce the findings of the investigation once it is complete.
The FSS is the executive arm of the Financial Services Commission (FSC), which recently weighed in on the increasing levels of crypto regulation in the country. FSC chairman Choi Jong-Ku stated that the government was still considering whether to shut down all local crypto exchanges, or simply those that “have been violating the law”.
The lack of clarity regarding the possibility of a ban on cryptocurrency exchanges in South Korea has wreaked havoc on the crypto market. Bitcoin fell below $10,000, XRP lost close to 50% of its value, and the crypto market as a whole lost nearly $300 billion of its market cap.
Added to the SK government’s uncertainty and ambivalent stance is the dissent being voiced by South Korean citizens who are, for the most part, opposed to stricter regulation and the possible banning of cryptocurrency exchanges in the country.
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