South Korea: Insider Deal breaks out in the country's Financial Supervision Service :


In South Korea, the situation around cryptocurrencies is far from stable, with rumors prohibiting cryptographic transactions. A case of insider trading within the FSS is still fueling the fire.

New insider trading related to cryptocurrencies
Remember what happened at Coinbase last December, when some employees of the company took advantage of the information about the introduction of Bitcoin Cash on the platform and its twin GDAX. Employees were accused of buying BCH just before the company announced the addition of the currency.

The same thing, or almost the same, would be produced in South Korea, within the FSS Financial Monitoring Service.

According to local media reports, an official working in the FSS reportedly committed insider trading related to cryptocurrencies. According to the information relayed, this person would be suspected of having traded cryptocurrencies, while taking advantage of privileged information concerning the government's regulatory plans.

The official reportedly made nearly 7 million won in profits, buying cryptocurrencies worth 13 million won on 3 July last before selling for 20 million won on 11 December.

Governor's confirmation
The Governor of the Financial Supervision Service, Choi Heung-sik, himself confirmed the existence of this case in a statement reported by the Korea Times.

"We have acknowledged allegations that an FSS official sold cryptos assets based on insider information prior to the government's announcement to regulate the market. We are studying this case. "

According to observers, the governor publicly confirmed the case under pressure from the National Assembly Committee, which would have called for the opening of an in-depth investigation into the matter.

Waiting for the outcome

It is difficult to know the sanctions that await the offending official, if of course the facts are recognized at the end of the investigation.

Another FSS official mentioned the subject, stating:

"There is no code of ethics and no code of conduct for investing in digital currency in the FSS regulations, so it's hard to say more about punishment at this stage. "

According to local source Chosun, the official might not be charged with insider trading, but rather misuse of internal information, which could alleviate his sentence.
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