S.Korea to Recognize Crypto as Digital Assets

Law will enter into force in a year after approval; crypto companies will required to comply with the FATF's AML requirements and register with FSC
27 November 2019   202

The National Policy Committee of the National Assembly of the Republic of Korea passed a bill on the regulation of virtual currencies. This is reported by local media.

According to the document, virtual assets are classified as digital assets.

Cryptocurrency companies will be required to comply with the FATF's requirements for preventing money laundering, as well as register with the financial intelligence unit of the Financial Services Commission (FSC).

Certification will not pass those who refuse to notify authorities of suspicious activity, do not receive a certificate of the Information Security Management System, and will also manage bank accounts that have not been identified.

For such companies, a fine of up to 50 million won (about $ 42,500), or imprisonment for up to five years is provided.

According to representatives of the FSC, the bill will contribute to the transparency of the cryptocurrency market, as well as legitimize investment in this type of asset.

It is expected that one year after approval, the bill will enter into force.

SEC to Accuse Shopin in $42M Worth ICO Scam

The Commission believes the actions of Shopic during the ICO was the offering or unregistered securities
12 December 2019   92

The U.S. Securities and Exchange Commission (SEC) has accused Shopin and its CEO Eran Eyal of cryptocurrency cheating on investors during the initial offer of $ 42 million tokens.

According to the SEC, the actions of Eyal and his company were an unregistered offer of securities in the form of Shopin tokens.

Eyal told investors that the funds raised would be used to create a blockchain platform for storing and tracking profiles of online store customers. In addition, he lied about existing partnerships with retailers, the agency said.

The problem is that Shopin never created a system, says the regulator.

Instead, Eyal appropriated more than $ 500,000 for personal use, including a dating service.

SEC accused Eyal and Shopin of violating securities laws. The regulator requested the court to oblige the accused to return the illegally appropriated funds with interest and payment of fines. In addition, the SEC has proposed banning Eyalu from acting as an official in any offer of securities or tokens.

In a statement, the SEC also recalled that the prosecutor’s office in 2018 accused Eyal of appropriating $ 600 thousand of investor funds to his previous company Springleap.