Crypto

South Korea’s stock exchange bans families of staff from trading crypto

Dunamu, the South Korean company that runs the Upbit exchange, has extended trade bans to relatives of its executives and employees.

Local media reported Tuesday that the step comes with the aim of improving ethical management in the crypto market.

“We have come to tighten regulations since August to live up to our status as the most trusted digital asset exchange that meets global standards,” a Dunamu spokesperson told the Korea Timetables.

More controls in place for the sector

Media sources say the measure has been in effect since August. While the rule only applied to staff before, Dunamu is now said to have widened the ban to include families. The company wishes to assume its social responsibility like the traditional markets.

The top 12 cryptocurrencies by market capitalization are the only ones allowed to trade on other exchanges. Additionally, their annual coin purchase is limited to 100 million won (about $75,000). In addition, they must report their transactions quarterly.

South Korea goes through a regulatory overhaul

In September 2021, the government reportedly updated the law to limit cryptocurrency trading. Cryptocurrency companies, their executives, and their staff must follow the rules to stop price manipulation. This came after the governor of the Financial Surveillance Service of South Korea (FSS), Lee Bok-hyun, indicated that virtual assets could are part of the country’s capital markets law.

Failure to comply with the rule could lead to a fine of 100 million won (about $75,000) or suspension of operations. Last month, South Korea’s financial watchdog also advised caution by allowing domestic companies to enter the cryptocurrency industry.

In the meantime, a 20% capital gains tax will be imposed on cryptocurrency gains under the country’s new cryptocurrency tax system. The system of government strength will come into force in 2025.

Korean Crypto Exchanges Take the Lead

Recently, operator Upbit also recognized a “knowledge asymmetry” problem in digital asset markets. Therefore, Dunamu’s Upbit Investor Protection Center is would have create a “digital asset guide” to promote ethical investment practices.

According to media reports, the operator has decided to translate white papers and business strategies of prominent companies in the digital asset industry for Korean investors. It will also produce Korean translations of international legislation and administrative guidelines for users.

Notably, on November 21, Dunamu also held its inaugural Environmental, Social and Governance (ESG) Management Committee meeting.

Meanwhile, South Korea’s Digital Asset Exchange Association (DAXA), formed by Bithumb, Upbit, Coinone, Korbit, and Gopax, announced the delisting of Wemix tokens.

Although the approach is based on “inaccurate” declarations, there is an absence of a legal framework. Consequently, the financial authorities would have assess coin delisting requirements on national cryptocurrency exchanges.

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