Yet Another Crypto Scandal In  South Korea

Yet Another Crypto Scandal In South Korea

The Financial Supervisory Service (FSC) of South Korea is responsible for supervising and examining different financial institutions. According to its director, Choi Heung Sik there are suspicions that FSC employees have sold bitcoins just hours before the cryptocurrency ban announcement made by Park Sang-ki, the Justice Minister of the country.

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The Financial Supervisory Service (FSC) of South Korea is responsible for supervising and examining different financial institutions. According to its director, Choi Heung Sik there are suspicions that FSC employees have sold bitcoins just hours before the cryptocurrency ban announcement made by Park Sang-ki, the Justice Minister of the country.

Insider trader allegations emerged days after the infamous ban statement. A lawmaker from an opposition party asked Choi Heung Sik during a hearing led by the financial committee if there were any FSC employees that sold their bitcoins just before the statement. Choi’s response was ‘’yes”.

The premature statement that the Justice Minister made on January 11 infuriated the masses and triggered panic-induced sell-offs that shook the market. The presidential office tried to ease the scandal when it reported that the government has not reached a final decision over the future of cryptocurrency trade. The ban over cryptos was suggested as a measure towards the overheated market. It was supposed to put on hold market speculations.

Choi Heung Sik admitted that some employees of the FSC had information about the Justice Minister’ speech before it was released. This is when they decided to trade off their tokens before the statement was to be made public. At the hearing of the financial committee Hong Nam-ki, the head of the state coordination division ensured that FSC employees are to be investigated thoroughly and punished accordingly. He further added that the agency is enforcing a new law, which will prohibit officials from trading with digital coins.

As you can see for yourself, the situation in South Korea turns out to be a lot more sophisticated than it seemed in the first place. All the speculations and opposing statements released by the officials only add fuel to the fire. 250,000 south Koreans submitted a petition to the Blue House to step off from its plans to ban the crypto trade. FSC furtherly managed to take the scandal to a whole new level. The agency is supposed to remain neutral and serve as a watchdog but from what we’ve seen so far, this is far from the truth.

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