South Korea’s Top Financial Watchdog Joins Probe Into Cryptocurrency Exchanges

South Korea’s high financial regulator the Financial Services Commission (FSC) joined the continuing probe into native cryptocurrency exchanges Sunday, May 13.

The FSC will now be collaborating within the anti cash laundering investigation, hitherto led by the Financial Supervisory Service (FSS), with the intention to assist broaden its scope, information outlet Korea Times studies.

Commenting on the company’s transfer, Vice Chairman of the FSC Kim Yong-beom has urged regulators worldwide to coordinate their regulatory insurance policies on cryptocurrencies.

Following a request from the FSS, the FSC will now test financial institution accounts belonging to Korean crypto exchanges on compliance with anti-money laundering (AML) requirements and different fraud prevention measures. According to Korea Times’ report, the primary topic of the expanded audit can be Bithumb, the nation’s largest crypto alternate which revealed plans to launch its personal crypto token again in April.

According to Korea Times, Kim Yong-beom has mentioned that regardless of the investigation into crypto exchanges, the FSC doesn’t oppose the usage of blockchain in banking and monetary companies and is at present evaluating the usefulness of cryptocurrencies as a method of cost.

FSC’s chairman has additional famous the necessity to talk a coordinated world strategy to regulatory insurance policies on crypto, arguing that “international discussion” is “necessary.”

“We are seeing a steady development of blockchain technology thanks to its greater accessibility and efficiency. Because this technology has the potential to shake up today’s regulations on securities, regulators have to respond to such a looming challenge.”

On May 6, the newly appointed FSS governor Yoon Suk-heun took a beneficial stance in direction of crypto, noting its “positive aspects” and claiming that the company is chargeable for offering “remedies to help crypto trading and blockchain technology get better.”

Earlier this week, Cointelegraph reported that South Korean police have began an investigation into Upbit, one of many high crypto exchanges within the nation, for alleged fraud. The occasion has triggered a downward development on the crypto markets.

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