Korean Financial Authority Launches Crypto Investigation into Employee Investments
The Korea Financial Services Commission is investigating crypto investments by employees in relevant departments to ensure that no unethical profit has taken place.
The Korean Financial Services Commission, South Korea’s financial regulator, has launched an internal investigation into employee crypto investments. Local media Yonhap News reported on April 26 that the FSC will receive reports on the investment status of employees until May 7.
The investigation will examine the investment records of employees of departments related to cryptocurrency. The authorities primarily want to ensure that employees have not made unethical gains from knowledge of undisclosed information. They are required to declare their investments to the President of the FSC.
The report alludes to an incident that occurred in December 2017. At that time, some employees made significant profits by buying and trading ahead of a regulatory announcement. The regulator has since advised its employees to be cautious about cryptocurrency investments.
The agency already imposes investment restrictions on employees who work in related departments. Employees have already started sending their reports
South Korea has been one of the most active countries in terms of regulation. It has already put in place tax directives and published a prohibition of confidentiality parts. The nation offers mixed singles on its crypto approach, though its primary focus is eliminate crypto funded crime.
FSC under fire for controversial crypto comments
One particular incident that received criticism was when FSC President Eun Sung-soo aroused indignation among the country’s youth for his comments on crypto. He denounced investing in an asset that can fluctuate more than 20% per day, saying:
“I don’t think this is the right way to jump on the bandwagon by recklessly buying a digital asset that fluctuates more than 20% per day. If the younger generation takes the wrong path, it is the duty of the elders to correct them and tell them that it is wrong ”,
Cryptocurrency investors, a group mostly made up of people in their 20s and 30s, called the remark condescending. Sung-soo also said crypto is similar to a work of art and crypto investors might not deserve protection.
Criticism has reached the point where young Korean investors have formed a petition demanding Sung-soo’s resignation. More than 114,000 people had signed the petition three days after its creation.
Other individual (s) made a TVN from a news article about Sung-soo’s comments and sold it on the OpenSea platform. The NFT sold for $ 2,416.