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The recent ban imposed by the South Korean National Police will prohibit certain individuals from purchasing additional cryptocurrency. The announcement also released a report showing that the domestic availability of digital coins has improved compared with the global market.
Officials with certain investigation and inspection responsibilities are prohibited from buying additional cryptocurrency. In the announcement on Friday, it was reported that officials of the Korean National Police Agency (KNPA) will be obliged to make other disclosures about any digital assets held.
The country’s main law enforcement agency emphasized penalties for violations, but did not indicate its seriousness. Domestic sources hinted that the move was aimed at increasing transparency to sensitive KNPA departments after the South Korean government announced last month that it would crack down on illegal encrypted transactions.
The government claims that rising market prices have exaggerated the risks of money laundering and fraud. Between April and June, further efforts will be made to curb illegal activities. Countermeasures were discussed at recent meetings between various ministries, law enforcement agencies, and financial regulators. It is still uncertain what other policies can be implemented in the coming summer.
Although KNPA opposes its own officials who own digital assets, some media reports have turned their attention to cryptocurrencies that are widely used in the South Korean market.
According to a report in Chosun Ilbo, the country has more cryptocurrency exchanges than Japan and the United States. The Financial Services Commission warned that all cryptocurrency exchanges on approximately 200 platforms in the country may be shut down for failing to register with the regulator. Among these exchanges are the controversial smaller trading platforms, which usually trade in a variety of more volatile currencies.
Currency varieties are not unique to young and smaller domestic exchanges. Korea’s largest crypto trading platform Upbit supports 178 different cryptocurrencies. Another major exchange Bithumb offers 170 services. In contrast, Coinbase, the leading cryptocurrency exchange in the United States, trades 58 currencies, while each listed exchange in Japan adds up to only 29.
Cui Gong, a partner of the Korea Institute of Finance, said: “Many transactions are based solely on agreements between issuers and exchanges.” He suggested that there is a lack of transparency standards, and current industry rules encourage speculation Activities and create a dangerous environment for investors.
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