South Korea bans cryptocurrency trading for its officials

South Korean government issued an as of now unofficial ban for all the public servants to trade or invest in the digital currencies
06 March 2018   486

South Korea is one of the largest cryptocurrency markets and usually regulations their government puts through affect the market in some way. Now the impact wouldn't be so huge, but the chances are, the affected group wouldn't be very happy about it. You see, Korean government effectively banned all government officials from trading cryptocurrency, even if it's not related to their jobs.

As reported by Maeil Business Newspaper, South Korea has issued a ban on virtual currency holdings and transactions to all civil servants. The document entitled “Virtual currency holdings and transaction-related information for civil servants” has been circulated through the departments. In this document the personnel department requested that all government officials refrain from holding and trading virtual currency, especially in the work hours, even if there is no job relevance. This is actually the first case of government banning cryptocurrencies for all its public officials.

The disciplinary actions are not defined by the document, but are openly encouraged, because cryptotrading is considered a “violation of the prohibition of forbearance obligations under the civil servants' law”. Each ministry is free to judge the possibility and severity of such a disciplinary action.

As you can see, the South Korean government is quite adamant to stop any possibility of any kind of trading or investing in the cryptocurrencies using information learned by officials during their duties. This is, while quite strict, possibly the best approach for this kind of situation, because there have already been accusations of officials' insider trading and market manipulation using undisclosed information of future regulations.

Crypto Exchange White Label Service launched by OKEx

OKEx, one of the biggest exchanges in the world, has declared the run of a crypto exchange creation programme ‘Digital Asset Exchange Open Partnership Program’
20 June 2018   81

The announcement claims that the programme is intended to “nurture a new generation of digital asset exchanges”. To establish a new crypto exchange, interested parties have to provide OKEx with a domain name, logo, and specialties of the management team. They are assured to possess “solid industry experience, quest for service excellence, and strong industry influence.”

Applicants should also deposit 500,000 OKB tokens into their accounts. This equals around $2.5 million at the present rate, according to OKB is a utility token that were first sold in March of this year in packages of up to 100, each costing $100. They can be applied to settle transaction fees on the exchange and traded for Bitcoin, Ethereum and Tether.

The applicants will get access to OKEx’s fitting system (which links up buy and sell orders), cold and hot wallets (offline and online cryptocurrency storage), clearing system (which handles money transfer), client support system, and know-your-customer and anti-laundering systems. They will also get support from the OKEx technical team.

100 places are suggested by the programme in its first phase. It is anticipated to start in July. The announcement also points out the setup that the new exchanges must have. They will develop their own native tokens, and distribute them as follows:

  • 25 percent to themselves;
  • 24 percent to OKB holders;
  • and 51 percent to be mined.

OKEx explains the mechanisms by which the tokens will be mined/released. The term white label was firstly invented in the music industry - a white label vinyl record was a release so new that it had not yet been labelled, a much sought-after thing. Presently it cites to a service or product manufactured by one company and sold to another for re-sale under a different brand name.