South Korea’s reputable financial regulator of the Financial Services Commission, FSC, is another one to join the investigations being done on local crypto exchanges.
Some of the areas that the FSC will focus on are supposedly that of anti-money laundering, which was previously led by Financial Supervisory Service (FSS). According to the news outlet, Korea Times, the steps taken by FSC will help to expand on this growing concern.
Vice Chairman of the FSC, Kim Yong-beom is urging regulators worldwide to take part in this mission, as he believes “international discussion is necessary”. He also believes that such a discussion can help to find ways to regulate policies on cryptocurrencies. Based on the claims made, the FSC now has the authority to verify bank accounts associated with Korean crypto exchanges that have been following anti-money laundering standards (AML) and other prevention measures in place.
The Korea Times’ report has hinted that Bithumb would be audited, as it is the country’s largest crypto exchange that is in the process of launching its own token. The investigations are not done to oppose the use of blockchain technology altogether, as FSC seems to be fine with its uses in the financial sector.
On May 6th, FSS governor, Yoon Suk-heun is believed to appreciate the positives of crypto and only views this investigation process as a way to “help crypto trading and blockchain technology get better”. Since the allegations, South Korean Police’s investigation into Upbit, a crypto exchange, resulted in alleged fraud. Because of all the alleged frauds, one’s perspective on crypto keeps fluctuating. Will Korea’s attempts in cleansing the crypto market succeed?