The Korea Financial Services Commission (FSC) will impose a nice of 100 million received (round US$89,844) on alternate workers caught buying and selling on the platforms for which they work. As of now, there are not any legal guidelines that prohibit executives and workers of exchanges from buying and selling crypto on their very own platforms.
According to the FSC, officers from the Korea Financial Intelligence Unit (FIU), which operates beneath the FSC, met with the heads of Korea’s main crypto exchanges on June 3 to inform them of the up to date decree.
South Korea’s up to date Financial Transactions Reports Act (FTRA) requires all crypto exchanges to register with the FIU by Sept. 24, 2021. Registration isn’t a easy submitting course of, nevertheless. Exchanges should meet stringent circumstances to have their registration authorized. These circumstances embrace buying partnerships with industrial banks and having their anti-money laundering (AML) and know-your-customer (KYC) methods authorized.
Any exchanges that aren’t authorized by the deadline might be shut down. The FIU has additionally said that registered exchanges whose executives or workers are caught buying and selling on their very own platforms after the September deadline may have their registration standing revoked.
Korea’s main exchanges have really established firm insurance policies that limit worker buying and selling, however a lot of them might be rendered mute by the FIU’s new restrictions.
Upbit, one of many world’s largest exchanges by quantity, at the moment permits workers to commerce on its personal platform however they’re prohibited from touching any cryptocurrency that’s not bitcoin, ether or tether. All firm workers are prohibited from buying or buying and selling something past these three cryptocurrencies, no matter which platform they use.
Additionally, Upbit workers are required to report how a lot crypto they personal and the way a lot they revenue from every commerce. There can be an annual restrict on how a lot they will commerce, however this restrict has not been publicized.
Bithumb, one other main South Korean participant, permits workers to buy and commerce new cryptocurrencies solely inside 72 hours after they’re listed on the alternate. It additionally prohibits buying and selling throughout work hours. Bithumb additionally requires all workers to signal an announcement saying they won’t use firm data and knowledge for private buying and selling earnings.
Should this ban be carried out, these alternate workers would nonetheless have the opportunity to commerce crypto, however solely on different platforms, not their employers’.