Gairika Mitra
Authorities in South Korea are stepping up efforts to combat misconduct and illegal activities in the cryptocurrency market.
Lee Bok-hyun, chief of the Financial Supervisory Service (FSS), pledged to eradicate unfair trade practices in the virtual asset market during a meeting with CEOs of 16 cryptocurrency companies.
Adopting a hardline stance, Lee emphasized a zero-tolerance approach. He also committed to closely monitoring market prices of newly listed coins and unconfirmed rumors.
“We will focus all investigative capabilities to hold wrongdoers strictly accountable,” Lee said.
The meeting aimed to discuss industry trends, regulatory directions, and outstanding issues following the enforcement of the Virtual Asset User Protection Act. Lee acknowledged the smooth establishment of the new regulation system. However, he urged operators to ensure they meet legal obligations and address any shortcomings. He stressed that exchanges should actively monitor transactions and maintain open communication with supervisory authorities.
To tackle regulatory uncertainty, Lee committed to engaging in active discussions with policy authorities, such as the Financial Services Commission, while observing the implementation of the first phase of the virtual asset law and industry self-regulation efforts.
Worldcoin Fined for Data Privacy Breaches
In a separate development, South Korea’s Personal Information Protection Commission (PIPC) has fined Worldcoin — an ambitious project led by OpenAI co-founder Sam Altman — for breaching the Personal Information Protection Act (PIPA). The commission imposed a total of 1.14 billion won (approximately $850,000 USD) in fines against the Worldcoin Foundation. It also fined its affiliated company, Tools for Humanity Corporation (TFH), along with corrective orders and improvement recommendations.
Cryptocurrency Used in Drug Distribution Network Dismantled
Additionally, South Korea’s Narcotics Crime Investigation Unit dismantled a drug distribution network that utilized cryptocurrency to conduct illegal transactions. The recent arrest of a 33-year-old methamphetamine distributor highlights the increasing link between virtual assets and criminal activities. It underscores the challenges authorities face in regulating this evolving financial landscape.
These developments signify South Korea’s commitment to fostering a fair and transparent cryptocurrency market while aligning with international efforts to rein in digital asset misconduct. As governments worldwide grapple with the fast-evolving industry and its potential risks to investors, South Korea’s actions demonstrate a proactive approach to addressing these challenges.
Read More
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- Worldcoin Faces Backlash As South Korea Slaps Crypto Project with $850,000 Fine
- Crypto Gains Traction in South Korea and Hong Kong Through Institutional Support
Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
