Representatives of the state authorities of South Korea were seized in insider trading. They sold all their cryptocurrency assets before the regulators announced the strengthening of control over the cryptocurrency market. The Financial Supervision Service (FSS) of the country engaged in the investigation of the incident. This is reported by Bitcoin.com with reference to local media.
There is intelligence that FSS staff sold all of the virtual currency that they invested in just prior to the announcement of the government’s measures.
Right-wing party lawmaker
During the meeting of the National Assembly Commission this Thursday, the FSS confirmed information that some officials invested in cryptocurrency and sold them before the government announced the introduction of new regulatory measures.
“We have confirmed the intelligence,” FSS Governor Choi Heung-sik admitted.
We have confirmed that some public officials have done such an act. It is a tremendous thing for civil servants to influence the market and gain profits.
Chief of the Office of the Prime Minister
The Law on Ethical Standards in the Public Service of South Korea "strictly prohibits officials from participating in the trading of securities in the light of the possibility of using inside information." However, since cryptocurrencies do not fall under the definition of securities, financial assets or currencies, "there is no indication in the FSS provisions that investment in virtual money is inadmissible". At the same time, the use of insider information can still qualify as a punishable act.