South Korean Watchdog Demands Crypto Exchanges to Ban Staff from Trading Their Own Tokens

South Korean Watchdog Demands Crypto Exchanges to Ban Staff from Trading Their Own Tokens

According to a brief note shared by the Chinese news outlet 8BTCnews, the South Korean regulator FSC (Financial Services Commission) has demanded that crypto exchanges and other providers of services to do with digital assets to begin preventing their staff from trading the own coins.

【韩国 FSC 禁止虚拟资产服务提供商交易自己发行的代币】https://t.co/WEbRi0SN81— 8BTCnews (@btcinchina) September 29, 2021

The FSC requires that platforms should set up internal mechanisms of control that will stop staff from insider trading and do it within one month from now. If this requirement is not met in due period of time, exchanges may be suspended from operating and face a fine of up to 100 million Korean won ($85,000).

This demand of the regulator, according to the explanation provided, is based on the rules regarding conflict of interests that was passed in the government on September 28, Tuesday. The goal is to save users from losing funds and raise the transparency level.

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