2 - 4 minute read
In recent news, employees of the South Korean cryptocurrency exchange, Coinone have been arrested due to the exchange of money for the listing of specific digital assets. Authorities have issued a warrant of arrest for the exchange platform’s listing team leader, Kim Mo, and listing broker Hwang Mo, for violating the Concealment of Criminal Proceeds Act and a breach of trust. The virtual asset Furiever Coin was among the cryptocurrencies listed exclusively on Coinone and has been linked to a recent kidnapping and murder in the Gangnam district in Seoul.
Coinone is one of the largest cryptocurrency exchanges in South Korea, and their recent scandal has sparked concerns among regulators and traders within the country’s digital asset industry. The South Korean government has been actively regulating the industry for the past few years as several exchanges have been hacked, resulting in millions of dollars lost. This scandal with Coinone is yet another example of the need for stricter regulations and compliance procedures for the sake of the safety and integrity of the digital asset market.
According to CoinDesk Korea, “The arrest warrants were issued after a series of investigations, and during that time, Coinone was asked to provide the prosecution with digital materials such as online chat records.” This information supports the allegations of bribery by the Coinone employees and adds to the severity of the situation.
The consequences of the Coinone scandal could extend beyond its own operations and affect the entire South Korean cryptocurrency industry. The violation of the Concealment of Criminal Proceeds Act is a severe offense, and the arrest of Coinone’s employees could lead to significant repercussions for other exchanges.
However, some analysts believe that this could be a temporary setback and could potentially be an opportunity for the industry to strengthen itself if more robust regulation measures are implemented. As Jackson Ro, CEO of the South Korean blockchain start-up, Singulariteam puts it, “It is crucial for exchanges to improve their internal controls and implement stricter monitoring systems, and through this process, the market will continue to evolve, both domestically and globally.”
The Coinone scandal has created serious concerns about bribery and the integrity of the South Korean cryptocurrency industry’s regulations. The incident highlights the dangers of loosely regulated markets and the need for stricter compliance and internal control measures.