South Korea has been unrelenting in its attempts to regulate the crypto market. The latest report indicates that the government plans to impose a fine of $90k on exchange employees who trade on their employer exchanges.
The fines are in line with new rules announced on May 28th by the Korean government. The government stated that it was now illegal for executives and exchange employees to trade on exchanges where they directly have an interest.
The government took this move in an attempt to control price manipulation by those who run crypto exchanges. For a long time, South Korea has been known for its Kimchi premium. This is a scenario where crypto prices on Korean exchanges are usually higher than any other place globally.
However, the move by the government is not unilateral. As per the Korean local daily, the Financial Services Commission (FSC) recently had a meeting with local exchanges. At the meeting, it was agreed that an amendment would include fines to be levied in case of a breach of the rules and regulations.
The latest move is a follow-up of what the Korean government started earlier in the year. Last month, the government announced the introduction of a 20% tax on all cryptocurrency-related transactions.
At the time, the country’s finance minister noted that the country still doesn’t recognize cryptos as currency. The country is continually taking steps that will give the government more information on how crypto traders move their money.