South Korean authorities will check the placement of native tokens on exchanges
The South Korean Financial Intelligence Unit (KoFIU) has begun investigating cases of listings of its own tokens by local cryptocurrency exchanges.
According to a division of the Financial Services Commission (FSC), native cryptocurrencies were the largest contribute to the collapse of a number of exchanges and ecosystems this year. In addition, according to the laws of South Korea, local trading platforms are prohibited from issuing native tokens.
KoFR assures that it is conducting an investigation in the interests of investors. The initial audit showed that all local crypto exchanges were conducting legitimate transactions in South Korea.
However, the FSC has announced plans for a deeper investigation as there are still some doubts surrounding the internal listing of the tokens. One of the main suspects is Flatabersen. Since 2020, the company has been under investigation related to the listing of its own FLAT token.
Major exchanges such as Upbit and Bithumb have already been scrutinized by regulators. The investigation will now focus more on smaller centres.
The FSC and the national parliament are currently working on a bill that would allow regulators to penalize crypto exchanges for unfair trading.
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