Financial regulators in South Korea are mulling a protocol for bringing class action lawsuits against what it calls ‘unfair crypto trading.’ The system is designed to protect investors, a major priority for officials.
The system is being promoted with the idea of protecting investors. This is a process that South Korean officials have long been focused on. The Terra incident, in particular, has sparked a strong focus on protecting investors.
Kukmin Ilbo managed to obtain an internal report from the Financial Services Commission (FSC), which spoke of the proposed plan for a class action lawsuit system.
The report reads,
“A bill to enact a class action law that can be applied to general illegal activities, including the securities sector, has been proposed to the National Assembly. We can accept various alternatives, including adding the field of virtual assets to this bill.”
Interestingly, the report also stated that the FSC does not view cryptocurrencies as finance. It remains to be seen if this viewpoint will be reiterated elsewhere.
Expanding Probe on Crypto Trading and Token Listing Bribes
South Korean officials are also working on expanding probes related to token listing bribes if more evidence emerges. According to those in the know, it is common in South Korea for trading platforms to list certain tokens in exchange for bribes.
There is currently an investigation ongoing for this matter. There have been multiple developments concerning this. One such development includes a former Coinone employee getting arrested. The employee accepted 1.5 million in bribes in exchange for listing 25 assets.
South Korean Crypto Exchange Market Has a Busy Time
The crypto exchange market in South Korea has been undergoing a tumultuous time. There have been a series of hacks, including GDAC being hacked for $13 million. Meanwhile, Bithumb was raided by police in a price manipulation probe.
Additionally, Binance has also entered the country by acquiring a majority stake in the Gopax exchange. Furthermore, Samsung expects to launch its cryptocurrency exchange in 2023.
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