South Korean cryptocurrency exchange Bithumb has banned its employees from trading on its personal platform.
Announcing the information on Friday, Bithumb said the transfer is to reinforce transparency over crypto transactions, however an upcoming legislation in Korea mandates native crypto exchanges should prohibit employees from trading on their very own platforms.
The legislation turns into efficient September 25. If crypto exchange employees do not comply by the date, they could face a advantageous of as much as 100 million gained (round $88,000) from the Korea Financial Services Commission (FSC) in the event that they get caught trading on the platforms they work for.
Bithumb mentioned it’ll fully ban Bithumb employees from trading on its platform by the top of this month. To that finish, it has obtained “a written oath” from its workers that they are going to withdraw all funds by that point.
“From this month on, we’ll strictly handle whether or not or not employees adjust to the rules by way of steady monitoring, self-audit, and inside reporting system operation,” mentioned Bithumb.
Bithumb at present already has another restrictions imposed on its employees, it mentioned. These embrace prohibiting them from trading throughout work hours and from shopping for new cryptocurrencies inside 72 hours of their itemizing on the exchange. Bithumb additionally requires all employees to not use firm data for private trading advantages.
Given the legislation is imminent, different Korean crypto exchanges, resembling Upbit and Korbit, might comply with Bithumb’s transfer. The legislation additionally requires native crypto exchanges to accomplice with native banks to open real-name financial institution accounts for patrons by September 24. While greater exchanges might meet the necessities, as many as 50 smaller exchanges in Korea might shut down given the necessities.
Earlier this 12 months, Binance Korea and OKEx Korea shut down, forward of the legislation that went into pressure in March that not permits Korean crypto exchanges to share their order books with different exchanges.
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