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Officials and representatives of the crypto business agreed to develop rules protecting investors and involve law enforcement agencies in the supervision of the activities of cryptocurrency exchanges.
Sung Il-Jong, a member of the House of Representatives from the ruling People’s Power Party of South Korea, said that now, amid the collapse of Terra, the country does not have effective levers of pressure on crypto exchanges:
“When exchanges break the rules, they must be held legally responsible to ensure that the market functions smoothly without any problems.”
The deputy was supported by the Deputy Chairman of the Parliamentary Commission on Financial Services Kim So-Young (Kim So-Young) and warned the heads of cryptocurrency exchanges Upbit, Bithumb, Coinone, Korbit and Gopax present at the meeting about the control over their activities by law enforcement agencies:
“We are going to establish close ties with the Ministry of Justice, the prosecutor’s office and the police to monitor any illegal activities in the industry and protect the rights of investors.”
Recently, South Korean cryptocurrency exchanges received letters from the Seoul police with a request to block the movement of funds on the accounts of luna Foundation Guard in connection with embezzlement. A little earlier, the South Korean authorities and the Financial Supervisory Service (FSS) began an emergency audit of local cryptocurrency exchanges. The purpose of the check is to clarify whether investors are sufficiently protected from a repetition of the situation that happened to the TerraUSD (UST) stablecoin and its LUNA token controller. South Korea’s National Tax Agency has imposed a fine of 100 billion won ($78 million) on Terraform Labs and its co-founder, accusing it of tax evasion.
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