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On Monday, an area information outlet reported that South Korea’s Upbit and Bithumb crypto exchanges are beneath investigation by the Seoul Southern District Prosecutors Workplace over suspicions regarding lawmaker Kim Nam-kuk’s digital belongings.
Officers mentioned they’re at present investigating whether or not Kim used insider data to amass his huge digital belongings price round $4.5 million and to seek out out their origin. As a part of the probe, prosecutors raided Upbit and Bithumb earlier as we speak and seized transaction data and different supplies.
Opposition Lawmaker’s Scandal
The investigation has brought on a stir, with many questioning the supply of Kim’s digital belongings. And the way he managed to build up such a major amount of cash. Accusers have alleged that Kim, a first-term lawmaker, owns round 800,000 Wemix cash.
The report deemed this quantity inconsistent together with his frugal picture. Moreover, Kim faces accusations of buying and selling cryptocurrency belongings whereas attending no less than two conferences of the judiciary committee of the Nationwide Meeting in Might and November of final yr.
Notably, Upbit and Bithumb are two main South Korea’s largest crypto exchanges. However this isn’t the primary time they’ve come beneath scrutiny.
In 2018, Upbit was investigated over allegations of fraud after it was accused of inflating its stability sheets. Nonetheless, the alternate was later cleared of any wrongdoing.
Bithumb, then again, was hacked twice in 2018. The hack resulted within the lack of tens of millions of {dollars} price of crypto.
South Korea Stance On Crypto
South Korea has since been a serious participant on the earth of crypto. Nonetheless, the nation has been taking a extra cautious method towards the regulation of digital belongings in recent times.
In February, South Korea’s Monetary Providers Fee (FSC) introduced new guidelines for cryptocurrencies. The foundations required all digital asset service suppliers to register with the company and adjust to strict anti-money laundering rules. The transfer was seen as a step towards better regulatory readability and oversight within the crypto trade.
Regardless of the tighter rules, South Korea stays a hub for cryptocurrency exercise, with a few of the world’s largest crypto exchanges, corresponding to Bithumb and Upbit, primarily based within the nation. Nonetheless, the federal government has additionally been cracking down on unlawful crypto-related actions, together with fraud and cash laundering.
It’s price noting the current investigation into Upbit and Bithumb is prone to have an effect on the nation’s cryptocurrency trade. It’s because the 2 exchanges account for a good portion of the nation’s buying and selling quantity.
The result of the investigation might additionally function a warning to different exchanges to be vigilant and adjust to rules to forestall fraudulent actions.
Along with regulatory efforts, South Korea can be exploring the potential of blockchain know-how to enhance varied sectors, corresponding to finance, healthcare, and logistics. The nation has launched a number of blockchain initiatives and initiatives, together with a government-backed pilot program to trace beef exports utilizing blockchain know-how.
Whereas South Korea stays a key participant within the world crypto panorama, it’s also taking a measured and cautious method to regulating the trade to make sure investor safety and stop illicit actions.
Whatever the elevated rules within the crypto trade, the worldwide crypto market has maintained composure. Over the previous 24 hours, the worldwide crypto market capitalization has surged practically 2% with a price trying to reclaim the beforehand recorded $1.2 trillion.
Featured picture from, Chart from TradingView.com
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