Native cryptocurrencies turned out to be the most important issue contributing to the demise of quite a few exchanges and ecosystems this yr, most just lately through the FTX collapse. Korea’s monetary authority, Korea Monetary Intelligence Unit (KoFIU), took discover of the identical because it launched a probe into crypto exchanges in relation to itemizing their in-house, self-issued tokens.
Crypto change FTX and its 130 affiliate companies just lately filed for chapter attributable to a worth crash of its in-house token, FTX Token (FTT). Whereas Korean crypto exchanges are barred from issuing native tokens, KoFIU’s probe into the identical is to make sure regulatory adherence for investor’s security, in accordance to a neighborhood report.
Preliminary investigations revealed that each one crypto exchanges carried out lawful operations throughout South Korea. Nonetheless, a Monetary Providers Fee (FSC) spokesperson revealed plans for deeper investigation as a result of “there are nonetheless some doubts associated” to in-house token listings.
Flata Change is among the major suspects and is being investigated for itemizing its in-house token, FLAT, again in January 2020, as reported by native media Yonhap. Main exchanges resembling Upbit and Bithumb have been cleared by the authorities and the investigations shall be extra centered on smaller exchanges.
On common, 297,229 distinctive South Korean customers visited FTX.com month-to-month, making South Korea high the chart of nations that had been most impacted by FTX’s collapse, confirmed a CoinGecko evaluation.
Associated: South Korean prosecutors name on Terra co-founder Shin Hyun-seong to cooperate: Report
Based mostly on suspicion of benefiting from unwarranted LUNA gross sales, South Korean authorities froze roughly $104.4 million (140 billion received) from FTX co-founder Shin Hyun-seong.
The Seoul Southern District Court docket accepted the choice to freeze Shin’s property till additional investigations are concluded.
