South Korea is looking at the possibility of imposing a fine on digital currency exchange operators if they are caught trading on their own networks.
On May 28, the government announced that it would ban executives and employees from trading digital assets through the exchange platforms they’re working for. The ordinance was an effort to avoid price manipulation from these individuals.
According to a report published by a local media in South Korea, the government is developing a plan for these employees to face a fine of 100 million won. The amount of almost 90,000 US dollars will be charged if they are caught breaking the new rules.
The fines will be imposed by the Korea Financial Services Commission (FSC), but there is no law to forbid operators and employees from trading on the platforms they are working for.
The Korea Financial Intelligence Unit (FIU), which is part of the FSC, had a meeting with the directors of Korean crypto exchanges earlier this month. FIU informed them of the new decree and the fines they might face in the future.
All South Korean digital currency exchanges are called to register with the Korea Financial Intelligence Unit by September 24, 2021. In order for their registrations to be complete, the virtual platforms must meet certain requirements.
Crypto exchanges have to partner with commercial banks for the registration to be valid. Their anti-money laundering and know-your-customer systems must also be approved by the FIU. All those that won’t pass the registration phase will be shut down.
If executives or employees of the registered exchanges are caught trading on their platforms after the September deadline, they will have their registration invalidated. They will still be able to trade on other exchanges if the government approves the ban.
