South Korea Regulator To Check Crypto Betting Services Companies

02/15/2023

1 minute read

2023.02.15 08:53

By Tiffany Smith

Budrigannews.com – A local publication reported on February 15 that Korean financial authorities are investigating the staking services market. However, the unidentified official told the journalists the following:

The crypto community’s concerns regarding the potential consequences of the recent court settlement between Kraken and the Securities and Exchange Commission (SEC) of the United States are beginning to manifest. South Korean authorities intend to investigate the country’s crypto-staking operators, following in the footsteps of their American counterparts.

Because nothing has been done, “the position is that there is nothing to be a problem.”

The examination’s duration and methods were not specified, but they may have an impact on some legislative decisions. Crypto staking is currently not regulated in Korea, as opposed to more common digital asset operations.

A settlement between the SEC and the Kraken crypto exchange on February 9 marked the beginning of the global discussion regarding crypto staking. Kraken agreed to stop its staking program and pay a $30 million fine. The crypto community in the United States and even the acting SEC commissioner voiced strong opposition to the move.

J.W. Verret, an associate professor at George Mason Law School, provided an analysis for Cointelegraph regarding the SEC’s intention to use its Kraken playbook against staking protocols in general:

“The subtext in the administration’s policy toward crypto is that it should be choked off,” according to a pattern observed by financial regulators and the White House.

The Financial Services Commission of South Korea issued guidelines in February that outline the kinds of digital assets that will be regarded and regulated as securities in the nation. Securities are regarded by the law as financial investments in which investors are not required to make subsequent payments.