South Korea probes crypto exchanges for local tokens

Native cryptocurrencies were the main reason for the collapse of a variety of cryptocurrency exchanges. The most recent example was the collapse at FTX.

Korea Financial Intelligence Unit (KoFIU), Korea’s financial authority, noticed the same thing and initiated an investigation into cryptocurrency trading platforms in regards to listing their own tokens.

Due to a decline in the price for the FTX Token (the company’s internal token), the cryptocurrency exchange FTX has filed for bankruptcy.

According to a local article, the KoFIU is investigating the matter in order to maintain regulatory compliance in order protect investors. Despite the fact Korean cryptocurrency exchanges being prohibited from releasing their native tokens, it is still true.

Initial inspections showed that every cryptocurrency exchange in South Korea had followed all laws and regulations.

Representatives from the Financial Services Commission (FSC), stated that there are “still some uncertainties” regarding in-house token listing. FSC officials announced that they were preparing to conduct an in-depth investigation.

Yonhap reports that Flata Exchange is one the main suspects. It is currently the subject of an investigation after it listed FLAT as its in-house token in January 2020.

Authorities claim that Upbit and Bithumb exchanges are not being investigated anymore. They will instead concentrate their investigations on smaller exchanges.

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