a top South Korean The financial regulator has launched an investigation into domestic crypto staking services. And as far as crypto exchanges are concerned, that means new staking regulations could be coming.
media outlet News1 The report states that the Financial Supervisory Service (FSS) “recently requested” that some of the country’s top exchanges cooperate with an investigation into their staking operations.
News1 claims that at least three of the country’s four largest exchanges — Upbit, Bithumb, Korbit and Coinone — confirmed they were contacted by the FSS recently.
An unnamed official at one of the exchanges said that the FSS had sent a “request for data related to staking services” to the trading platform.
Employees of one of the three exchanges said they sent data related to the FSS “in the third week of February” this year.
The FSS did not comment on whether the bet rules would be forthcoming. But a spokesperson acknowledged that the regulator is making inquiries into the matter. The regulator suggested that a complete ban on domestic holding is not being considered at present.
Why the South Korean Regulator Is Taking an Interest in Crypto Staking
Earlier this month, US regulators launched a legal case against the bet providers. exchange was kraken Investigated for a possible securities violation And Coinbase CEO Brian Armstrong claimed the Securities and Exchange Commission (SEC) was trying to “get rid of crypto in the US.”
The media outlet noted that the SEC’s move recently drew a reaction in Seoul. The FSS clearly wants to ensure that domestic staking providers are staying on the right side of the law.
Domestic exchanges have claimed that they do not use customer funds to pay out staking income – and that the exchanges’ own tokens are kept separate from customers.
But regulators are keen to resolve the question of whether staking services can legally be considered a “securities” business.
Further developments from the United States regarding whether some cryptocurrencies can be viewed as securities could affect the outcome of a legal battle in South Korea.
South Korean prosecutors said this week that they looked into a recent SEC filing Terraform Labs and its CEO do quon as a “positive development”. The SEC has charged Kwon and company executives with “securities” violations. The regulator is now awaiting a response from the US judiciary.
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