Korean Authorities Admit to Postponing Cryptocurrency Regulation Because it Legitimizes Market

Authorities have admitted that the South Korean government had postponed the regulation of the cryptocurrency sector because it feared consumers will acknowledge it as the government legitimizing the cryptocurrency market. Government is Aware Regulation Will Legitimize Market Last week, CCN reported that the government of South Korea and its financial agencies including the Korea Financial … Continued

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South Korean Government Agency Seeks Direct Supervision Over Crypto Exchanges

South Korean Government Agency Seeks Direct Supervision Over Crypto Exchanges

The South Korean government is reportedly seeking to bring cryptocurrency exchanges under the direct supervision of the country’s Financial Intelligence Unit. This will obligate crypto exchanges to follow anti-money laundering directives like banks do. This is the first time a government agency has said it will oversee crypto exchanges.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

AML Obligations

South Korean Government Agency Seeks Direct Supervision Over Crypto ExchangesThe Korea Financial Intelligence Unit (FIU), under the supervision of the Financial Services Commission (FSC), recently held an Anti-Money Laundering Policy Advisory Committee meeting. The meeting was set up to discuss measures against money laundering and terrorism financing activities.

“We plan to include virtual currency exchanges under a direct supervision of the AML / CFT (Anti-Money Laundering/ Countering Terrorism Financing) system,” the committee was quoted by Maeil Business. Citing that “the legislation has already been introduced in the National Assembly,” the news outlet elaborated:

This is the first time government agencies have said they will oversee virtual currency exchanges…When the bill is passed, virtual currency exchanges will be obliged to monitor the suspicious money-laundering transactions and report them to the FIU.

The Need for Direct Supervision

Currently, the FSC and the FIU have no jurisdiction over crypto exchanges since cryptocurrencies are not considered financial assets. The regulators have to monitor money-laundering activities of crypto exchanges through banks.

South Korean Government Agency Seeks Direct Supervision Over Crypto ExchangesWith the proposed changes, according to the committee, “If a virtual currency exchange does not comply with these obligations, the FIU or the entrusted FSS [Financial Supervisory Service] will be able to inspect the monitoring system of the virtual currency exchange,” the publication conveyed.

According to the Hankyoreh, the FSS said that it will also tighten its oversight of banks that provide virtual accounts to crypto exchanges. For example, banks must report deposits of more than 10 million won per day or more than 20 million won over 7 days for crypto transactions to the FIU as suspicious transactions that could lead to money laundering.

Crypto Industry’s AML Measures

Recently, South Korea’s top cryptocurrency exchanges have been ramping up their AML measures.

South Korean Government Agency Seeks Direct Supervision Over Crypto ExchangesOne of the largest crypto exchanges in the country, Bithumb, has recently implemented some strong anti-money laundering measures. Last month, the exchange blocked the trading of 11 countries as well as tightened its verification process for foreign users. The exchange also lowered the withdrawal limits for crypto traders that do not fully verify their identity. The third largest exchange in the country, Coinone, also said that it is implementing similar withdrawal limits for accounts not using the real-name system.

Another major exchange, Upbit, has an anti-money laundering system in place in collaboration with Thomson Reuters. The exchange recently rewarded six people for reporting fraudulent cryptocurrency schemes.

What do you think of Korean government agencies wanting direct supervision over crypto exchanges? Let us know in the comments section below.


Images courtesy of Shutterstock, Bithumb, and the FSC.


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Binance’s Fiat Integration May Lead Cryptocurrency Exchanges to Move to Malta

Earlier this month, Binance, one of the most widely utilized multi-billion dollar cryptocurrency trading platforms alongside the likes of Coinbase and Bitfinex, has established a bank account in Malta. Malta’s Pro-Blockchain Legislation As a part of the European Union (EU), Malta is a country with a strong financial industry and economy which contribute to the … Continued

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South Korea Mulls Over How to Cash Out State-Owned Cryptocurrency

South Korea Mulls Over How to Cash Out State-Owned Cryptocurrency

The South Korean government is mulling over how to cash out the cryptocurrency it recently confiscated. While the most likely option is to auction the coins off using the government-owned auction platform, various concerns have been raised.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Cashing Out BTC

South Korea Mulls Over How to Cash Out State-Owned CryptocurrencyThe South Korean government is contemplating how to best cash out its recently-acquired cryptocurrency. As part of a criminal case, the government has seized 191.32333418 BTC belonging to “Ahn,” the convicted operator of a porn site. The country’s Supreme Court recently judged that cryptocurrency is a property that the government can confiscate.

“The prosecutor is facing a decision of how to dispose of the BTC and give the proceeds to the treasury,” Yonhap reported, elaborating:

The most likely option would be auctioning off through the asset disposal system of the Korea Asset Management Corporation (KAMCO), ‘Onbid’.

KAMCO is South Korea’s government-owned asset management company that manages Onbid, a system which facilitates the online trading of property owned by public-sector entities. The platform has been used to sell other items confiscated by the government such as securities. “Securities auctions have been actively conducted on Onbid,” Etoday noted.

BTC’s Price Fluctuation Is a Problem

According to Yonhap, “the prosecutor’s biggest concern is the price fluctuation of bitcoin.” The price of BTC reached over 25 million won on January 7 but has now dropped to 8.3 million won, according to data from Bithumb, one of the largest crypto exchanges in the country.

South Korea Mulls Over How to Cash Out State-Owned Cryptocurrency

“Onbid sets the date of public announcement, the date of public sale, and the lowest price. However, because of price volatility, the [price of] bitcoin may be larger between the announcement date and the bid date,” the news outlet described. “For example, if prosecutors set a minimum price of 8.3 million won on the 8th and receive a bid on the 13th, if the price of 1 bitcoin surges to 10 million won on the 13th, it becomes a ‘lottery auction’.”

An official of the legal department was quoted by the Seoul Newspaper as saying:

Unlike artwork, bitcoin has a daily market price…and the auction price can be changed in seconds.

Citing that “if the prosecution seizes foreign currencies, it will sell them to a foreign exchange bank…as if it were paid in the national currency,” therefore, the seized BTC could be similarly sold “directly to the market instead of an auction.” The prosecutor is now studying how to process the confiscated BTC.

Potential Conflict With Crypto Regulations

South Korea Mulls Over How to Cash Out State-Owned CryptocurrencyIn addition, “It is also pointed out that it is not appropriate for the prosecutor to sell [BTC] to the market without the government’s position on virtual currencies being fixed.” Since the ruling of the Supreme Court, the country’s top financial regulator, the Financial Services Agency (FSC), has confirmed that its view on cryptocurrency remains unchanged, crypto is not a financial asset, and there is no change in the regulations.

A KAMCO official commented that “Even if the bidding is conducted…there is no problem with the regulation,” the news outlet elaborated and quoted an official at the prosecution, emphasizing:

The first case is important, because [more] virtual currencies will be forfeited in the future.

What do you think the Korean government should do with the seized coins? Let us know in the comments section below.


Images courtesy of Shutterstock, Bithumb, and the Korean FSC.


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No Illicit Activities: South Korea’s Biggest Cryptocurrency Exchange Cleared by Government

Bithumb, South Korea’s biggest cryptocurrency exchange, has been cleared by local financial authorities and the National Tax Service (NTS). While the company was ordered to pay $28 million in taxes, the government found no evidence of illicit activities, tax evasion, and suspicious business operations. No Illegal Activity For many months, investors in the local cryptocurrency … Continued

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Korean Crypto Exchange Coinone and 20 Traders to Face Charges Over Margin Trading

Korean Crypto Exchange Coinone and 20 Traders to Face Charges Over Margin Trading

The South Korean police are reportedly preparing to charge Coinone’s executives, including its CEO, and 20 of the exchange’s members. This follows a 10-month investigation on allegations that the exchange provided gambling services through its crypto margin trading program.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Coinone’s Investigation Concludes

South Korea’s Cybercrime Investigation Unit of the Southern Provincial Police Department announced on Thursday, June 7, its plan to bring charges against Coinone over the exchange’s margin trading service, local media report.

Korean Crypto Exchange Coinone and 20 Traders to Face Charges Over Margin TradingCoinone, which opened in August 2014, is the country’s third-largest cryptocurrency exchange, after Upbit and Bithumb. Its 24-hour trading volume is $34,342,088 at the time of this writing, according to Coinmarketcap.

The police are reportedly recommending that the prosecutor’s office charges three of Coinone’s executives, including CEO Myunghun Cha, as well as 20 members. The former will be charged with providing illegal gambling services and the latter with illegally gambling.

In South Korea, gambling is a crime under Chapter 23 of the Criminal Act.

The investigation of Coinone “on allegations that the exchange provided gambling services for margin trading” began in August last year, the Kyunghyang Shinmun wrote, elaborating:

The police concluded that the ‘margin trading’ service of the virtual currency exchange is gambling.

According to the police, “The case was the first investigation related to the operation of a virtual currency exchange and it took considerable time to review the law,” Yonhap conveyed on Thursday.

Crypto Margin Trading vs Gambling

Korean Crypto Exchange Coinone and 20 Traders to Face Charges Over Margin TradingCoinone and its executives have been accused of providing cryptocurrency gambling services through its margin trading program from November 2016 to December last year. The exchange “allowed members to trade up to four times the amount of the deposit (margin) and to pay commission in exchange for the transactions,” the news outlet described, adding:

Margin trading is similar to the credit trading technique of the stock market, but it was based on gambling because it was not authorized by the authorities and that it was targeting virtual currencies instead of stocks.

The investigation reveals that 19,000 Coinone users, between ages 20 and 50, had been using the exchange’s margin service. Most of them are either office workers, unemployed, or self-employed. In particular, 20 members traded over 3 billion won [~US$2.8 million]. The news outlet noted that gambling “can be used to collect criminal proceeds, and therefore interest in coins and margin users will be widened according to the results of the trial in the future.”

Coinone Denies Charges

Throughout the investigation, Coinone and its executives denied the charges and maintained that they “did not know it was illegal because there is a similar service in the stock market.” An employee of the exchange was quoted by the news outlet saying:

We do not think it is illegal because it [the service] has been legally reviewed by lawyers before [we started] the margin trading service.

What do you think of South Korean charging Coinone for offering gambling services through margin trading? Let us know in the comments section below.


Images courtesy of Shutterstock and Coinone.


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PR: Tron Mainnet Launched – Young Team Dispelled Rumors with Sweat, Perseverance and Success

Tron Mainnet Launched - Young Team Dispelled Rumors with Sweat, Perseverance and Success

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

TRX made a hit as the first cryptocurrency whose value exceeded a hundred times of its issuance price in 2018 when the New Year had been only a few days away. In a flash, it squeezed itself into the Top 20 list of cryptos with highest market capitalization. Since then, TRON has recruited a mighty tech team and released a series of iterations. Albeit good news now and then, TRON is never short of controversaries and even rumors.

Yesterday, TRON launched its Mainnet. All rumors were dispelled, and TRON came again under the spotlights.

First, I’ll talk about highlights of the launch, in case you don’t know yet.

TRON Mainnet Launch began as scheduled at GMT+8 of May 31, 2018. Justin Sun, the founder of TRON, announced that TRON Mainnet was officially launched in a TRON T-shirt. Rephrasing the famous line of Neil Armstrong, the first human stepping on the moon, Sun proudly claimed that “Odyssey 2.0 launch is one small step for TRON, one giant leap for blockchain.”

Sun explained in English what TRON had done and would do as such:
1. TRON takes the crown for commits in Q2, totaling more than any other blockchain project in the world;
2. TRON has completed mainnet token migration and shed its identity as an ERC token;
3. With 1.08M tokenholders, TRON is now the #1 token on Ethereum, far ahead of any other cryptocurrency, including Bitcoin and EOS;
4. TRON attracts much more attention than other blockchains on Youtube, Twitter, Weibo, WeChat, Reddit and other online platforms, promising to be the hottest cryptocurrency globally;
5. With a consistent trade volume of between USD 500M – USD 1B, TRON has stabilized in the top 5 of most traded cryptos;
6. More than 100 trading pairs have been activated for international transactions;
7. As the TVM version is scheduled to be launched on July 31, TRON is expected to complete basic infrastructure for a decentralized ecosystem in Q3.

In the end of his speech, Sun urged all TRON users to participate in the June 26 Super Representative Election.

After Sun, Lucien Chen (CTO), Marcus Zhao (director of blockchain R&D), Haoqi Zhao (director of technical operation) and Wendy Yi (product director) gave their speeches about TRON and its plans. TRON’s commitment to community is apparent in its various programs for developers that include TRON Accelerator, hackathons and programming competitions, totaling up to USD 2B in rewards.

As token conversion is the most widely concerned issue among users, TRON has given its official manifesto. As the mainnet is launched, TRX will gain independence, no longer an ERC20 token as it was. There are a number of exchanges where holders can transfer conveniently their TRX into the mainnet at the fixed ratio of 1:1. Users can transact as usual while conversion is being processed.

Available exchanges include Bit-Z, Bittrex, Bitfinex, Bibox, gate.io, Binance, Coinrail, Coinnest, Bitpie, Bixin, RightBTC, DragonEx, Upbit, Bithumb, Liqui, BitKop, OKEX, CoinTiger, Huobi pro and OEX. Watch out for the continually updating list before June 25.

When the migration is completed, all TRX holders are entitled to vote in an election that yields 27 super representatives, or SR, who are somewhat like senior managers in a company. SRs have the access to book-keeping, and their duties include daily maintenance, performance optimization and boosting the ecosystem. By the time that this piece was written, more than 60 individuals or organizations from all over the world had submitted SR applications, among whom were 20+ big names like Node Capital, LinkVC, GENESIS, Next Genius, Antpool, BTCC and Top.one.

As a Java-based DApp platform, TRON is developer-friendly and promises high network performance. Over 20 star-ups have joined for various DApps including cold setup wallets and blockchain explorers for PC, web and mobile devices.

The price of TRX rose by 6%, though only for a short time, during the half hour after the launch began on May 31 (GMT+8) while it had been fluctuating around USD 0.06 on the same day.

As a matter of fact, now that Odyssey 2.0 is technologically available, its full-fledged functioning involves reaching consensus, which in turn requires coordinating the efforts of more than its 1M+ users. From the 1st to the 24th of June, the community developers will be carrying out additional tests on the Mainnet and generating consensus before the first block, also known as the Genesis Block, happens at midnight, June 25 (GMT+8).

As the momentum goes, TRON will have surprises for the blockchain community every month ahead just like the amazing six months before now.

Contact Email Address
trx@tron.network
Supporting Link
https://tron.network/

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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EOS Mainnet Launch Countdown: Bithumb Will Do the Token Swap for You

EOS mainnet launch

The EOS mainnet launch countdown continues: there are now five more days until EOSIO 1.0 launches. Are you ready?

In case you hadn’t heard yet, EOS is going live on June 2nd. This means that the token is separating from its identity as an ERC20 token on Ethereum and is becoming its own entity. And this means that you need to register your EOS tokens – otherwise, you’ll lose them forever.

If you bought your EOS tokens from an exchange, you need to register them by June 1st. Not sure how to register? Check ...

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Can Cryptocurrency Businesses like Coinbase Compete With Wall Street Conglomerates?

The cryptocurrency sector has produced many multi-billion dollar companies over the past nine years. Most notably, Coinbase, Binance, Bitmain, Bitfinex, UPbit, Bithumb, and Canaan have evolved into billion dollar juggernauts, competing against major conglomerates in regions like the US, South Korea, and Japan.  San Francisco-based Coinbase now has over 20 million users, nearly as many as

The post Can Cryptocurrency Businesses like Coinbase Compete With Wall Street Conglomerates? appeared first on CCN

Bithumb: Cryptocurrency Exchange Bans 11 Countries from its Platform

Bithumb

One of South Korea’s largest cryptocurrency exchanges, Bithumb, has just announced that it will be halting trade on its platform in 11 different countries. Bithumb cited money laundering concerns and will comply with the anti-money laundering norms and is blocking residents in the jurisdictions of the Non-Cooperative Countries and Territories (NCCT) blacklist.

According to coinmarketcap, the exchange is the fifth largest in the world by trade volume. All new applications coming from these countries will be refused starting today, and all prior accounts will disappear by June 21st.

A spokesperson from Bithumb said:

...

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Korea’s Biggest Cryptocurrency Exchange Bans Trading in 11 Countries

Citing money laundering concerns, South Korean cryptocurrency exchange Bithumb has banned trading in 11 countries including North Korea, Iran, Iraq. In an announcement on Monday, the exchange said it will comply with global anti-money laundering norms by blocking all transactions of residents in jurisdictions belonging to the Non-Cooperative Countries and Territories (NCCT) blacklist. The 11 … Continued

The post Korea’s Biggest Cryptocurrency Exchange Bans Trading in 11 Countries appeared first on CCN

Pump and a Ponzi? Bithumb Criticized For Prematurely Listing a Cryptocurrency Created by its Developers

Earlier this week, Bithumb, South Korea’s second-biggest cryptocurrency exchange – behind UPbit – that is known for its rigorous verification process for new cryptocurrencies, announced the airdrop of Popchain, a cryptocurrency which the global community has not heard about previously. Two Weeks Into Development Hankyung, one of the leading mainstream media outlets in South Korea,

The post Pump and a Ponzi? Bithumb Criticized For Prematurely Listing a Cryptocurrency Created by its Developers appeared first on CCN

Investigation of South Korea’s Largest Crypto Exchange Upbit Continues

Investigation of South Korea’s Largest Crypto Exchange Upbit Continues

Since the South Korean prosecution started investigating Upbit, the country’s largest cryptocurrency exchange, more events have unfolded. While local media still discuss allegations and raise questions about Upbit’s business practice, some people believe that Upbit is already in the clear. The investigation continues.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

The Allegations

Investigation of South Korea’s Largest Crypto Exchange Upbit ContinuesLocal media reported on Friday that South Korea’s largest cryptocurrency exchange, Upbit, is under investigation for alleged fraud. More information has surfaced since, casting doubt on whether the allegations can be considered fraud. No charges have been filed against Upbit at the time of this writing. However, the prosecutors have confiscated the exchange’s computers and records as part of the investigation.

On Monday, News1 Korea described:

Prosecutors searched Upbit for fraud charges triggered by coinless transactions, suspicion of insider trading during the listing process, and allegations of money laundering and leakage of money through US trading sites.

Liquidity Issue

Investigation of South Korea’s Largest Crypto Exchange Upbit ContinuesThe first allegation, the most heavily scrutinized, concerns the liquidity of some of the coins listed on Upbit.

The exchange currently lists 137 cryptocurrencies but not all of them have wallets. South Korean prosecutors are accusing the exchange of “book-trading” where Upbit facilitates the trading of cryptocurrencies without actually having the coins in its possession. Joongang Ilbo elaborated:

Of the more than 130 cryptocurrencies currently traded on Upbit, about 40 do not support e-wallets.

News1 also pointed out that there is a viewpoint among investigators that if users request a transfer or withdrawal of their coins all at once, then Upbit will not be able to return their money immediately, which would render the original transactions fraudulent.

However, some argue that “most domestic trading sites are adopting this method” except those that handle a small number of cryptocurrencies such as Bithumb, the news outlet conveyed, adding that if this method is found to be an “apparent fraud…[then] the industry will not be much affected.”

Upbit Calls It a Misunderstanding

Upbit says that this investigation is “something that comes from misunderstanding,” Joongang Ilbo reported.

Investigation of South Korea’s Largest Crypto Exchange Upbit ContinuesThe exchange has repeatedly dismissed the above accusation, emphasizing that it will secure the needed cryptocurrencies as soon as it has brokered a transaction for the coins without a wallet, the news outlet detailed. In addition, Upbit insists that it has “never bought or sold cryptocurrencies that it did not own since it opened last October.”

Furthermore, given Upbit’s exclusive partnership with the US exchange Bitrex, crypto experts believe that “the lack of understanding of the Upbit trading system that links the system with the overseas exchange has led to the suspicion of book trading,” the publication emphasized, adding:

Cryptocurrency traded in KRW is directly managed by Upbit, and when customers buy other virtual currencies…transactions are made through Bittrex under the responsibility of Upbit.

A representative of another crypto exchange explained that except for the won market, Upbit transactions are made through Bittrex. “It is a legitimate book deal, and the prosecutors seem to have misunderstood why they are selling cryptocurrencies that they do not have.”

Previous Internal Audit

Another factor at play is an article published by Money Today on Tuesday, referencing an internal audit which reportedly happened earlier this year. The news outlet quoted Lee Seok-woo, president of Dunamu Inc. which operates Upbit, saying that “In early March, when Upbit was suspected of only [conducting] book transactions without [holding the] coins…I have been notified that the amount of coins [in the books] is 100% identical to the number of coins” in the wallets.

Referencing the above article, Twitter user Crypto of Korea wrote, “Upbit claimed that they had the internal account audit…The audit shows that 100% of the coins are real, the ledgers all synced to their own wallets.”

Investigation of South Korea’s Largest Crypto Exchange Upbit Continues

Some people subsequently took Upbit’s claim as the exchange being clear of wrong-doing in this current investigation, while others remain more objective. Twitter user Nash wrote, “Not concluded yet. It’s just “Upbit’s claim.” Meanwhile, Korean media still raise questions about Upbit’s operations and seek more answers at the time of this writing.

Insider Trading and Money Laundering Concerns

The prosecutors are also reportedly looking into allegations of insider trading and money laundering surrounding Upbit, News1 Korea wrote, noting that “some investors have raised strong suspicion that there is insider trading” at the exchange. “It is suspected that a person who receives information from an Upbit employee about an upcoming listing [on Upbit] would have bought the cryptocurrency from [an] overseas trading site and sold on Upbit.”

Furthermore, the investigators alleged that “illegal business funds are more easily transferred from the domestic [exchange] to the US due to the linkage with Bittrex,” the publication described.

As for any fraud charges, a lawyer was quoted by the news outlet commenting:

It is difficult to judge it as a fraud because there is no victim. If the capital market law applies to the transaction site [Upbit], it is a criminal offense. The lack of a clear baseline law is a bigger problem.

Joongang Ilbo further asserted that according to the position of the country’s financial regulators, “cryptocurrency is not subject to the Capital Market Law because it is not a monetary product.” In the unlikely event that the prosecutors can apply the Capital Market Law to this case, commissions through book transactions would be considered criminal proceeds, the news outlet explained.

Do you think Upbit has done anything wrong? Let us know in the comments section below.


Images courtesy of Shutterstock, Twitter, and Upbit.


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Korean Regulators Widen Investigation of Cryptocurrency Exchanges

Korean Regulators Widen Investigation of Cryptocurrency Exchanges

South Korea’s government is widening its probe on cryptocurrency exchanges, particularly the use of corporate accounts which the regulators say can lead to money laundering. This announcement follows the prosecutors launching an investigation on the country’s largest crypto exchange, Upbit.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Widening the Crypto Probe

South Korea’s top financial regulators are teaming up with prosecutors to widen their investigation of domestic cryptocurrency exchange operators. An official of the Financial Service Commission (FSC) was quoted by the Korea Times on Sunday:

Following a request by the Financial Supervisory Service (FSS) and the prosecution to address growing anti-money laundering compliance concerns and possible abuse of cryptocurrencies in money laundering and fraud, the FSC is looking into exchanges’ corporate accounts opened in local banks.

The use of corporate accounts for crypto transactions should have been discontinued when the government introduced the real-name system at the end of January. However, only 30% of all crypto accounts haveKorean Regulators Widen Investigation of Cryptocurrency Exchanges been converted into real-name ones so far.

The six banks that have the ability to issue real-name accounts have chosen to only service the country’s largest crypto exchanges: Upbit, Bithumb, Coinone, and Korbit. Nonetheless, not all accounts at these exchanges have been converted into real-name ones. In addition, all small and medium-sized exchanges continue to use corporate accounts for crypto transactions.

The regulators say that the use of corporate accounts can lead to fraud such as recently seen with Coinnest whose CEO was charged with embezzlement. The largest Korean crypto exchange by volume, Upbit, is also currently under investigation even though banks have been converting its accounts to real-name ones.

Collaborating with Other Countries

Korean Regulators Widen Investigation of Cryptocurrency ExchangesSouth Korea has been discussing a collaboration with other countries on cryptocurrency regulations. At a recent International Organization of Securities Commissions (IOSCO) Board of Directors and Annual General Meeting held in Hungary, FSC Vice Chairman Kim Yong-beom discussed cryptocurrency issues with major national supervisory bodies. The need for IOSCO to cooperate on cryptocurrency and ICO regulations was stressed at the meeting.

An official of the FSC was quoted by the Korea Times saying:

The FSC is collaborating with authorities in other countries. Our latest findings show that the domestic exchange faked its balance sheets and deceived investors. The FSC is checking Upbit’s computer system with prosecutors and the FSS to audit the exchange’s virtual currency holdings.

Meanwhile, the new FSS governor Yoon Suk-heun recently indicated that he will look into easing regulations on domestic cryptocurrency trading, citing that “there are some positive aspects to cryptocurrencies.”

What do you think of the Korean regulators widening probe on crypto exchanges? Let us know in the comments section below.


Images courtesy of Shutterstock and the Korean government.


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Cryptocurrency Exchanges Pivot to Decentralization to Avoid Overseeing User Funds

Earlier this week, Bloomberg columnists and editors Benjamin Robertson, Matthew Leising, and Andrea Tan spoke with various experts from decentralized exchange projects, research firms, and cryptocurrency exchanges to explore the motivation behind the focus of blockchain projects on decentralized exchanges. The Necessity of Decentralized Exchanges Any platform or application online is hackable, especially if poor

The post Cryptocurrency Exchanges Pivot to Decentralization to Avoid Overseeing User Funds appeared first on CCN

Major Cryptocurrencies Record Strong Gains, Ethereum Price up 7%, Bitcoin at $9,300

The cryptocurrency market has recorded strong gains once again over the past 24 hours, as the valuation of the market broke the $440 billion, moving one step closer to the $0.5 trillion region. Bitcoin, Ethereum, Cardano, Bitcoin Cash, and other major cryptocurrencies demonstrated large short-term gains. Ethereum Leads Market The price of Ether, the native … Continued

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Controversy Looms Over Bithumb Coins

Controversy Looms Over Bithumb Coins

South Korean cryptocurrency exchange Bithumb is reportedly re-evaluating its strategy to launch its own coins through a corporation in Singapore, following news of fraud that could have serious side effects to both companies. Under the current laws, Bithumb coins will still be subject to Korean regulation whether launched abroad or not.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Bithumb’s ICO

One of South Korea’s largest cryptocurrency exchanges, Bithumb, had a plan to launch its own coins for institutional investors through a corporation in Singapore.

On Tuesday, Bithumb confirmed that it is collaborating with Singaporean company B.Buster to “build a global [crypto] payment system.” The project is known as BTHB. “We received some investment from Bithumb to proceed with the project. Through a contract to use the trademark, [we have] prepared the project name “Bithumb Coin,” B.Buster explained.

Controversy Looms Over Bithumb CoinsHowever, local media reported on Wednesday that the companies are now re-evaluating this strategy.

The tokens were going to be issued by B.Buster, according to Sedaily, noting that the company is “re-examining” the project after hearing “news of the issuance of the coins abroad, the coin resale, and investment recruitment fraud” related to the unlaunched coins.

As soon as rumors that Bithumb was going to issue its own cryptocurrency circulated in the crypto community, ICO investor recruitment began in the market, Daum described. Etherscan, which provides data about Ethereum-based tokens, currently shows 2 Bithumb coin listings: 10 billion Bithumb Coin (BTHB) and 1 billion Bithumb Coin Point (BTHP). Bithumb denied having knowledge of these listings, the news outlet detailed.

Controversy Looms Over Bithumb Coins

Reconsidering Not Terminating

Controversy Looms Over Bithumb CoinsPrior to the re-evaluation, B.Buster said “We have limited resale and distribution until the listing on the exchange,” the news outlet noted. However, if B.Buster is selling to general investors and not to institutions, it “would be a breach of contract” with Bithumb, the publication pointed out. “In the meantime, the rumors spread and more investors are getting more and more concerned about the investors’ protection, which is why the ‘reassessment’ position was revealed.”

According to the news outlet, Bithumb and B.Buster expect to be “issuing a coin in the end,” calling the project a “reconsideration” rather than a termination.

B.Buster reportedly announced on Wednesday, “There will be no public sale for the ‘BTHB’ project. Only selected institutional investors are allowed to participate, excluding citizens/entities of the Republic of Korea and People’s Republic of China, and citizens/entities/residents of the United States of America.” The company noted that “Any sale at this point is only to institutional investors” that it is already in touch with. “Please beware of scammers and impersonators” pretending to be the company or its affiliated entities, B.Buster reportedly warned.

Korean Laws Still Apply

The financial authorities have warned that domestic cryptocurrency exchanges issuing and promoting their own tokens could have “serious side effects such as internal price manipulation,” Money Today reported, adding:

The current law also makes it clear that Bithumb coins are subject to [Korean] regulation. Under the Electronic Money Act coins whose value fluctuates like virtual currency cannot be a means of payment.

Recently, Kakao Corp was also rumored to be launching an ICO abroad. The Korean Financial Services Commission (FSC) also warned that the company’s ICO, if launched, would still be subject to Korean laws and could have an adverse impact on its Korean subsidiaries.

What do you think of Bithumb launching its own coins? Let us know in the comments section below.


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Kyber Network and OmiseGo Surge 70% With Bithumb Integration as Bitcoin Dips Below $9,000

Kyber Network (KNC) and OmiseGo (OMG) have surged by more than 73 percent and 32.5 percent respectively upon the announcement of South Korea’s biggest cryptocurrency exchange Bithumb’s integration. Bithumb Jackpot Earlier this year, Storm, an Ethereum-based ERC20 token project that incentivizes users for completing microtasks such as viewing advertisements on mobile phones or carrying out … Continued

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