South Korean regulators threaten crypto exchanges with massive fines
The South Korean Financial Intelligence Group (FIU) met with representatives of cryptocurrency exchanges to warn them about large fines in case of violation of the ban on trading digital currencies on their platforms.
According to Korean media outlets, the main financial authority is actively lobbying for a plan to impose fines on cryptocurrency exchange executives and employees in the amount of up to 100 million won ($90,000) if they are caught trading on their sites.
This step was a continuation of the tightening of measures announced by the country's regulator at the end of May and related to the Law "On reporting and use of certain information on financial transactions." Then the local representatives of the crypto industry were only notified of the ban on trading within their exchanges, without giving any specifics. The main goal that the South Korean authorities continue to pursue is to prevent possible price manipulation in the market.
At a recent meeting of FSC with the heads of 20 crypto exchanges in the country, they learned about the various difficulties faced by the trading floors of South Korea. As a result, one of the new security measures in the event of a hacked exchange is that they are now required to hold at least 70% of their clients' deposits in cold wallets. In addition to this, the financial regulator intends to study in detail the previous breaches to identify the potential involvement of insiders.