South Korean Officials Caught on Insider Trading

Korean government officials presumably sold their cryptocoins just before the regulators announced regulatory measures
18 January 2018   462

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 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.

Hong Nam-ki
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. 

Binance to Partner with Chainalysis for AML

Use of Chainalysis KYT solution will allow to compile with KYC- and AML-norms and also simplify the process of opening bank accounts
18 October 2018   83

The largest exchange by daily trading volume Binance uses software from Chainalysis, called Chainalysis KYT [know your transaction], to monitor real-time transactions and identify transfers related to criminal activity. This is stated in a joint press release.

Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users. We expect many to follow Binance's lead to build world-class AML compliance programs to satisfy regulators globally and build trust with major financial institutions.

Jonathan Levin

Co-Founder and COO, Chainalysis

Thus, the use of software from Chainalysis not only guarantee compliance with the KYC- and AML-norms, but also simplify the process of opening bank accounts.

By working with Chainalysis, we are able to continue building a foundational compliance program that enables the next phase of our growth. Our vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally, while adhering to regulatory mandates in the countries we serve.

Wei Zhou

CFO, Binance

Chainalysis KYT release was held in April.