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Korbit Crypto Exchange Restricts Employee Trading to Comply With Mandate in South Korea

2 mins
Updated by Kyle Baird
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In Brief

  • Korbit said that it will keep an eye on the accounts of employees and their families.
  • Upbit also extended these trading restrictions on family members of its staff last November.
  • Crypto regulations in South Korea have gotten much stricter since the collapse of Terra LUNA and FTX.
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South Korean crypto exchange Korbit said it would administer accounts of employees and their families to strengthen internal control.

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

Upbit and Korbit Change Rules

In November, Upbit operator Dunamu extended these trading restrictions on family members of its staff.

The changes are being made to eliminate conflict of interest and instill ethical management in the market. Korbit also voluntarily decided to exercise internal control over employee families’ accounts, including those of brothers and sisters.

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

Last year, the top five crypto exchanges vowed to work under a joint consultative body to safeguard the market.

The changes came on the back of two major market meltdowns: Last year’s Three Arrows Capital (3AC) collapse and the recent demise of FTX. The market mayhem played a major part in wiping over a trillion dollars from the cumulative cryptocurrency market cap.

Crypto Market Cap chart by CoinMarketCap
Crypto Market Cap chart by CoinMarketCap

South Korea Gets Strict After 3AC Crisis

Prosecutors in South Korea recently placed a freeze on the assets of parties with connections to Terra Luna. In June 2022, the South Korean government announced a Digital Asset Committee to supervise the sector.

To improve investor protection and strengthen market oversight, the nation consolidated the operations of several ministries under the planning and finance, finance commission, science and technology, information communications, and personal information protection verticals.

The South Korean Financial Supervisory Service (FSS) has previously hinted that the nation’s securities and capital markets regulations may soon include virtual assets.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.

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Shraddha Sharma
Shraddha is an India-based journalist who worked in business and financial news before diving into the crypto space. As an investment enthusiast, she has also has a keen interest...
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