South Korea Seizes Three Crypto Exchanges, Alleges ‎Embezzlement ‎

Another exchange is charged with operating an illegal ‎fundraising business for ‎investing in ‎cryptocurrency ‎products‎.

‎South Korea’s regulator said on Wednesday that it has taken control of three ‎cryptocurrency ‎exchanges, and that the venues’ officials have been ‎prosecuted for alleged “embezzlement ‎crimes‏.”‏

Discover credible partners and premium clients at China’s leading finance event!

Join the iFX EXPO Asia and discover your gateway to the Asian Markets

According to local media, the move is aimed at protecting consumer interests against ‎the ‎exchange’s unlawful practices. In other words, the action is not ‘directly’ related to the ‎government’s recent ‎crackdown to rein in the booming and volatile cryptocurrency sector.‎

Local outlet Yonhap quoted an official as saying one of the ‎suspected exchanges is charged ‎with transferring the virtual assets‎ of a cryptocurrency trader to the account of the exchange’s ‎‎representative or officer.‎

Suggested articles

Can You Trade Cryptos Like Any Other Currency?Go to article >>

Separately, the FSA prosecutors are expanding their ‎investigations as an undisclosed ‎exchange is accused of operating illegal ‎fundraising business for investing in ‎cryptocurrency-linked ‎products.‎

South Korea’s Financial Services Commission didn’t disclose further details nor the names of ‎the defendants and only said in ‎a one-sentence statement: “It is ‎difficult to indicate the specific amount of forfeited assets at this point.”‎

The latest development comes amid Seoul’s shift toward tighter ‎regulation for ‎cryptocurrencies. South Korea — which has been ‎particularly seized by Bitcoin mania — has ‎also been scrutinizing ‎digital currencies exchanges, which were recently hit with massive ‎tax ‎demands, as part of ongoing efforts to control potential ‎systemic risks. ‎

On a related note, the Chairman of South Korea’s Financial Services Commission (FSA) today ‎said he maintains “a negative stance” to the proposed ICO by the country’s internet ‎giant Kakao, which owns the popular messaging app Kakao Talk.

Got a news tip? Let Us Know