Korbit Exchange Restricts Employee Cryptocurrency Trading in South Korea

[ad_1]

South Korean crypto exchange Korbit said it would administer the accounts of employees and their families to strengthen internal control.

Local reports noted on Jan. 16 that the country’s rules under the Specified Financial Information Act Enforcement Order prohibit employees and executives from trading virtual assets on the exchange they work for.

Upbit and Korbit change rules

In November, operator Upbit Dunamu extended these trade restrictions to family members of its staff.

The changes are made to eliminate conflicts of interest and bring ethical management to the market. Korbit has also voluntarily decided to exercise internal control over the accounts of employees’ families, including those of siblings.

Oh Se-jin, CEO of Korbit, said in a translated statement, “Implementing monitoring of our employees’ family accounts is part of our efforts to elevate Korbit’s internal control standards to the level of traditional financial institutions. .

Last year, the five major crypto exchanges pledged to work in a joint advisory body to protect the market.

The changes came in the wake of two major market meltdowns: the collapse of Three Arrows Capital (3AC) last year and the recent demise of FTX. Market chaos has played a major role in wiping over $1 trillion from the cryptocurrency’s cumulative market capitalization.

Crypto Market Cap Chart by CoinMarketCap South Korea Goes Strict After 3AC Crisis

South Korean prosecutors recently froze the assets of parties with ties to Terra Luna. In June 2022, the South Korean government announced a Digital Assets Committee to oversee the sector.

To improve investor protection and strengthen market surveillance, the country has consolidated the operations of several ministries in the vertical sectors of planning and finance, the finance commission, science and technology, communications of information and the protection of personal information.

South Korea’s Financial Surveillance Service (FSS) has previously hinted that national securities and capital markets regulations may soon include virtual assets.

Disclaimer

BeInCrypto has reached out to a company or individual involved in the story for an official statement on recent developments, but has yet to receive a response.

[ad_2]