South Korea is a very important region when it comes to cryptocurrency. The government is keeping a very close eye on this industry, though As such, three local trading platforms were “raided” this week. All of these exchanges suspected of embezzlement. Some assets still remain confiscated until further notice.
Whenever something big happens in South Korea, traders tend t panic. This recent “raid” on three exchanges is a positive development as a whole. Any company suspected of wrongdoings will have some explaining to do sooner or later. Weeding out the illegal behavior will help legitimize cryptocurrency as a whole. It is a very painstaking process, but one the industry direly needs.
The local FSC declared all three exchanges to be suspected of embezzlement. More specifically, they allegedly used customer accounts to make inter-exchange transfers. This is not allowed under South Korean law. It is also heavily frowned upon by cryptocurrency users worldwide. So far, it remains unclear if any effective evidence has been unearthed in this regard.
It seems all three firms have been on the FSC’s radar since January. At that time, the agency conducted an investigation of suspicious money transfers between cryptocurrency exchanges. Nipping this type of illicit activity in the bud at an early stage is of the utmost importance. It is evident not all trading platforms are as legitimate as one might assume. Any wrongdoings need to be highlighted and addressed accordingly.
Whether or not this will have any global repercussions, remains to be determined. Right now, this move will create some more bearish pressure on all markets. Even though this crackdown is for the greater good, traders will undoubtedly panic. At the same time, it remains unclear what will happen to these three exchanges moving forward. Some of their assets remain in custody of the FSC, for the time being.
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