Employees of Korea’s financial regulator ordered to report crypto holdings
April 27, 2021. Summarized by summa-bot.
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Korea’s financial regulator is looking to bolster crypto reporting requirements for its workers.
Korean Financial Services Commission (FSC) Chairman Eun Sung-soo has ordered FSC officials who hold crypto to file reports on their investments by May 7.
The FSC employees subject to reporting are those who manage virtual currency tech developments, those responsible for drafting and applying virtual currency laws, and those who report on and manage crypto exchanges.
An article from the Korea Times noted the comparative lack of regulation surrounding FSC officials’ investments in crypto when compared to traditional financial products.
While FSC employees are expected to notify chairman Sung-soo if they have speculated on crypto, and are prohibited from making investments using information they have gained ahead of the public through their privileged position, Korea Times reporter, Lee Kyung-min, noted soft penalties for policy violations:
The FSC chairman has recently drawn anger from South Korea’s crypto community, after urging adults not to set a negative example to younger generations through risky speculation.
Businesses handling crypto assets will also face stiff penalties for failing to meet reporting requirements, with the FSC threatening up to five years imprisonment for reporting failures.