Korea’s Financial Authority Tightens Crypto Disclosure Rules

South Korea seems to be strengthening the regulatory environment around cryptocurrencies. A month ago, the country’s taxman ordered crypto exchanges to disclose the trading activities of their clients. Now, the country’s Financial Services Authority has demanded that all employees of the authority disclose their crypto holdings by May 7th.

According to the authority’s chairman, Eun Sung-soo, the employees affected by this directive are those tasked with managing virtual currencies, drafting crypto laws, and those in virtual currency technology development.

The Chairman also noted that while these employees are allowed to speculate on cryptocurrencies, they are prohibited from using any information gained beforehand to make crypto trading decisions.

However, even as the authority seeks to bring clarity to the South Korean crypto market, the chairman has come under fire for the statements he has made with regards to the market. One of his statements that have drawn the most criticism is that adults are responsible for guiding youth from making the wrong decisions by investing in high-risk trading.

The public outcry against him has been so high that an online petition for his resignation has been signed by over 130k people. One of the petitioners noted that it was more than condescending for Sung to lecture people on crypto when investing in traditional assets such as real estate has become so difficult for the youth.

Nonetheless, the authority seems to be soldering on with its decisions. It has already been stated that any business that transacts in crypto but fails to report will face very stiff penalties, including the possible imprisonment of their owners.

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