South Korea looks into crypto exchanges to offer native coin

The Korea Financial Intelligence Unit (KoFIU), which is South Korea’s authority on financial matters began an investigation into crypto exchanges in regard to the listing of its own coin. FTX’s collapse has South Korean authorities on edge

A spokeswoman for the FSC informed Yonhap on Sunday that local exchanges are not permitted to issue their own currencies. The first round of inquiries has been carried out by the financial authorities, but they still want to look into more precise facts since there are still some questions over the listing of local currency.

In accordance with the Act on Reporting and Using Specified Financial Transaction Information, local cryptocurrency exchanges are prohibited from listing native coins and are also prohibited from selling, exchanging, or mediating transactions involving coins listed by people associated with the exchange.

Initial examinations indicated that every crypto exchange operating inside South Korea followed all applicable laws and regulations. On the other hand, a spokeswoman for the FSC said that there are plans to conduct a more in-depth examination since in-house token listings continue to raise certain questions.

Korean investors lost money with FTX

According to reports, there are around 6,000 Korean investors in FTT, and their holdings total 110,000 units. Korean users were responsible for 6% of FTX’s internet traffic in the month of October, making them the second most significant contributor behind Japan.

The number of crypto exchanges and other crypto-related businesses in South Korea is expanding. However, the existing method of accounting does not provide any choices for businesses that have cryptocurrency holdings. The FSS said that it has developed a strategy to assist in accounting for virtual currencies.

Companies will be required to provide disclosures on crypto issuances and token sales as a result of the new requirements. When companies are required to release financial statements, they will be subject to the obligation of disclosing the tokens that they now own.

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