KBA to Bring 'Order' to Korea's Crypto Exchanges

Korean Blockchain Association has proposed a self-regulatory framework
17 April 2018   641

The Korean Blockchain Association (KBA), founded in 2017 by South Korean companies from the blockchain industry, proposed setting rules for self-government within the association to set a standard for the entire industry of crypto exchanges.

Among other things, the minimum authorized capital of exchange member is proposed to limit 2 billion Korean won (1.8 million dollars). In addition, the members of the association will have to provide financial and audit reports.

These rules will be applied to 14 South Korean cryptoexchanges, including Bithumb, Coinone, Gopax, OKCoin Korea and Huobi Korea. In addition, as the South Korean edition of Yonhap writes, when the rules come into force, it will also oblige members of the association to store data on user transactions for five years. In addition, the exchange must have built-in systems that identify and report suspicious transactions.

These rules are part of a broader initiative to improve anti-money laundering measures launched by the South Korean Financial Services Commission.

We will establish the order of the domestically cryptographic [exchange] market through self-regulatory review. By providing a safeguard for the protection of users, we will contribute to ensuring the asset safety.
 

Jeon Jae-jin

Chairman, Korean Blockchain Association

Measures to self-regulate the industry of Korean crypto-exchanges are consistent with the intentions of some local exchanges to adhere to a more conservative approach to new crypto-currencies and ICO.

So, according to the proposed rules, within each exchange a committee will be formed to review the listing of new tokens issued through the ICO. It is also planned to introduce ethical codes to prevent insider trading.

Representatives of the OKCoin Korea exchange informed that their company "is preparing to fulfill all the criteria and full compliance with the new KBA rules."

We are definitely welcoming new self-regulation measures and thinking positive on this active movement to make reliable blockchain ecosystem. As part of this effort, Coinone has already set its internal organization and system to make transparency in trading of cryptocurrencies.
 

Coinone Rep.

According to Yonhap, the rules will be finalized by the end of next month. Each member of the association must provide the necessary documents before June 8.

SEC to Accuse Veritaseum ICO of Fraud

SEC believes that project's tokensale, thru which it raised $14.8M back in 2017-2018 had a signs of scam and company misled the investors
14 August 2019   346

The U.S. Securities and Exchange Commission (SEC) has sued New Yorker  and Veritaseum-related companies that have been caught by the agency in conducting an unregistered ICO with signs of fraud. It is reported by Cointelegraph.

According to documents published on the network, the SEC intends to hold Reggie Middleton accountable and immediately freeze the assets of Veritaseum Inc. and Veritaseum LLC.

The Commission claims that the defendants raised about $ 14.8 million through an initial coin offering (ICO) in 2017 - early 2018. At the same time, many investors were misled, as the company distorted information about the conditions of the token sale and deliberately hid some significant details.

The American regulator claims that the project still has about $ 8 million of illegally raised funds. According to the SEC, these assets must be frozen immediately.

Amid this news, the Veritaseum (VERI) rate has fallen by 70%. Now the coin is trading near the $ 5 mark, although at the beginning of 2018 its rate was approaching $ 500.

Veritaseum was created as a financial p2p platform, involving the movement of capital without traditional intermediaries. Also, VERI was positioned as a utility token for use in consulting services and access to various research works.

In 2017, Veritaseum blockchain startup fell victim to hackers, having lost $ 8.4 million from ICO investors.