South Korea has started researching crypto exchanges! Local currency plan. The Korea Financial Intelligence Unit (KoFIU), which is South Korea’s authority on financial matters, opened an investigation into the cryptocurrency exchange about the list of its internally issued tokens, according to a report by local media.
The government agency noted the fact that the cryptocurrencies of the land are the most obvious that led to the closure of major cryptocurrency exchanges and platforms in 2022. The failure of FTX worries the South Korean authorities.
The research was triggered by the failure of the cryptocurrency exchange FTX, which operates in the United States and has filed for bankruptcy on November 11 due to a mass exodus that is used to burn due to concerns about the ability of the exchange to maintain its capitalization. Concerns about whether FTX has sufficient capital have contributed to the growth of these concerns. An FSC spokesperson told Yonhap on Sunday that regional exchanges are not allowed to issue their own funds. The FSC provided this information to Yonhap. Finance officials did the first investigation, but they still want to investigate other facts because there are still questions about the city’s financial statements.
According to South Korea law
According to the law that reports on the use of Specified Financial Transaction Information, the country’s cryptocurrency exchange is prohibited from listing native coins and it is prohibited to sell, exchange or trade in transactions related to coins listed by people involved in the exchange. According to a Yonhap report, one of the cryptocurrency exchanges under investigation is Flata Exchange, which is located in Daegu.
There are many indications that Flat, the currency mentioned in January 2020, could be a regional coin. Financial authorities have noted that five of the largest cryptocurrency exchanges, including Upbit and Bithumb, have yet to issue their national currency. However, the authorities have not yet completed their investigation into the minor changes.
An initial assessment showed that every cryptocurrency exchange operating in South Korea complies with all existing laws and regulations. On the other hand, a spokesperson for the Financial Services Commission (FSC) said that further investigations are planned as the list of internal indicators continues to raise some questions.
South Korea investors lost money on FTX
According to estimates provided by local media, there are about 6,000 Korean investors in FTT, and they have a total of 110,000 units. According to Similarweb, Korean users accounted for 6% of FTX’s Internet traffic in October, making it the second largest contributor behind Japan. In this Nov. 16 meeting at KoFIU, CEOs of the top five cryptocurrency exchanges said that events such as the one that happened in FTX is very unlikely to happen in Korea and because of the action. They went on to say that the cause of FTX’s collapse was the result of mismanagement of client assets and the mismanagement of its subsidiary, FTT. The number of cryptocurrency exchanges and other crypto-related businesses in South Korea is growing. However, the current accounting system gives companies that hold cryptocurrency options no choice. The Financial Services Authority (FSS) said they have launched a plan to help account for virtual currency.
Companies will be required to provide information on crypto issuance and sales as a result of the new requirements. When companies are required to publish financial statements, they must be in a position to disclose their current financial statements.
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