- South Korean legislation enforcement is investigating Bithumb’s CEO over alleged bribery for listings.
- Coinone additionally faces comparable prices in opposition to a former worker.
- Different South Korean exchanges, together with Korbit, Gopax and Upbit, are below investigation for unlawful listings.
Legislation enforcement officers in South Korea are presently investigating Lee Sang-jun, CEO of Bithumb, over allegations that he accepted bribes in trade for including digital currencies to the platform, in keeping with sources.
The Seoul Southern District Prosecutor’s Workplace confirmed that it’s investigating Lee Sang-jun, CEO of Bithumb, however didn’t present additional particulars on the scope of the investigation. This adopted a police raid on Lee’s personal residence and Bithumb workplace complicated to collect incriminating proof.
Along with Bithumb, Coinone, one other South Korean trade, can be below investigation over comparable allegations in opposition to a former worker who reportedly accepted a bribe to get sure tokens listed on the platform. Prosecutors haven’t launched the id of the previous worker, citing South Korean privateness legal guidelines.
Moreover, native media outlet Chosun Biz reported {that a} bribery scandal involving listings has unfold to a number of different high digital forex exchanges in South Korea. In accordance with the report, legislation enforcement authorities are presently investigating Korbit, Gopax, and Upbit for alleged unlawful itemizing of tokens.
In South Korea, exchanges are liable for token listings and function below the Digital Asset Trade Joint Advisory Physique (DAXA), which consists of main platforms. Nevertheless, DAXA’s actions got here below scrutiny after the highest 4 exchanges delisted its sport writer Wemade’s token.
To make sure higher oversight, South Korean regulators are proposing a brand new authorized framework that may require token issuers to acquire approval from monetary establishments. The proposal is predicted to be included within the upcoming Digital Asset Framework Act, which is able to present a complete regulatory framework for digital currencies and exchanges.
Below the proposed legislation, tokens will solely be exempt from regulatory scrutiny if they’re already listed on main exchanges. Nevertheless, it’s not clear whether or not DAXA will surrender its mandate.
The latest collapse of the Terra ecosystem has led to a robust response from regulators, together with a collection of raids on forex exchanges and an overhaul of the present authorized framework for digital currencies.
