Korean Regulator Investigating Staff Insider Trading of Cryptocurrencies

A Korean financial regulator has reportedly indicated it is investigating possible insider trading of cryptocurrencies by its own staff.

AccessTimeIconJan 18, 2018 at 11:40 a.m. UTC
Updated Aug 18, 2021 at 7:57 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

An official from South Korea's Financial Supervisory Service (FSS) has reportedly said that an investigation is underway into claimed insider trading within his organization.

Choi Heung-sik, governor of the FSS, said the regulator – an executive arm of the Financial Services Commission – will make public any findings on the allegations of illegal trading of cryptocurrency by one of its staff members.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • According to the Korea Times, Choi said:

    "We've acknowledged allegations that an FSS official sold crypto-assets based on insider information before the government's updated announcement to regulate the market. We are looking into this case."

    The news source also cited Hong Nam-ki, minister of the office for government policy coordination, as saying that policies on trading digital currencies vary between government offices, and it will take time to develop a unified policy on the matter.

    news agency also indicates that multiple staff may have been involved in insider trading.

    The alleged insider trading is said to have occurred prior to Korean regulators announcing new rules on cryptocurrency trading in the country – a move that has been, at least in part, linked to the recent slump in prices across the crypto markets.

    With the restrictions, banks have faced closer scrutiny over their relationships with cryptocurrency exchanges, and holders of anonymous virtual accounts must now attach their identity or face fines. A possible ban of cryptocurrency exchange trading is still being considered, according to officials, and a decision is expected to be made during Thursday's parliamentary session, Reuters says.

    Korean National Assembly building image via Shutterstock

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.