The Financial Intelligence Group (FIU) of South Korea met with representatives of cryptocurrency exchanges to warn them that if they violated the restriction on digital trading currencies on their platforms, they could face significant fines.
According to Korean media reports, the country’s major financial regulator is pushing for a plan to fine cryptocurrency exchange leaders and workers up to 100 million won ($90,000) if caught trading on their website.
This step was part of the country’s regulator’s tightening of measures announced at the end of May and connected to the Law “On reporting and use of certain information on financial transactions.” The local representatives of the crypto sector were then merely informed of the trading restrictions within their exchanges, with no further details provided. The main priority of the South Korean authorities continues to be the prevention of market price manipulation.
FSC learned about the numerous issues faced by South Korean trading floors during a recent meeting with the directors of 20 crypto exchanges in the nation. As a result, in the event of a hacked exchange, one of the new security precautions is to keep at least 70% of their clients’ deposits in cold wallets. In addition, the financial regulator is to investigate past breaches in-depth in order to determine whether insiders were involved.