South Korean Officials Caught on Insider Trading

Korean government officials presumably sold their cryptocoins just before the regulators announced regulatory measures
18 January 2018   564

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 Join Forces With IdentityMind

IdentityMind provides exchanges with ability to comply with KYC\AML worldwide
26 March 2019   79

Binance announced an agreement with IdentityMind, which will help it ensure compliance with regulatory requirements and improve data security.

IdentityMind provides cryptocurrency exchanges with access to the platform, thanks to which they can monitor compliance with customer identification and anti-money laundering requirements in real time. This includes connecting new customers, managing their profiles and monitoring transactions.

The partnership between Binance and IdentityMind further strengthens our compliance capabilities and our commitment to re-invest in the blockchain ecosystem and grow it. We continue to evolve and enhance security systems while adhering to regulatory mandates in the countries we operate in. The goal is to foster greater trust among financial institutions worldwide.

Samuel Lim

Chief Compliance Officer, Binance

Last year, Bloomberg wrote about the Binance user identification system as the least strict in the entire industry, and linked the “level of anonymity” provided by the exchange with the risks of money laundering and market manipulation.

In October, Binance entered into an agreement with a supplier of transaction analysis software on the blockchains Chainalysis, and in November with Refinitiv, which developed an automated solution for client verification.

Whether the ordinary users of the platform will feel the impact of the integration of IdentityMind tools on themselves, the exchange does not specify.