Korean civil servants are accused of trading in insider trading
Last week, full of confusion and disputes over the regulation of cryptocurrency in South Korea continues to echo in the news. According to the local newspaper Chosun, some of the Korean government officials were charged with insider trading crypto-active.
According to media reports, on Thursday, January 18, some government officials of the Financial Supervision Service (FSS) were informed in advance of government initiatives to completely ban or severely restrict the currency trade. Shortly before the information on bans became public, they, guided by this information, took part in the exchange trades.
Head of the Financial Supervision Service Choi Hyun-Sik confirmed suspicions at a meeting with journalists on Thursday, admitting: “The information of the informants was confirmed. We found that some officials actually did these actions. ”
After the extremely unpopular and contradictory statements of Seoul about the crypto-currency regulation caused massive outrage, the charges, equivalent to corruption, further weakened the position of the government. A public petition calling for the abolition of obstacles to the dismissal of some scandalous ministers already has more than 200,000 signatures, which means that the government’s response is required within 30 days.
Meanwhile, the legality of any crypto-currency asset in the domestic market remains questionable. It is ironic that it is the vague legal status of the token that prevents the state from applying fully controlled control mechanisms to them. The official representative of the Financial Supervision Service said: “There is no code of ethics and behavior of a cryptocurrency investor in the rules of our department, so at this stage, it is difficult to say anything about the punishment.”
Korean newspapers also report that officials may be accused not of insider trading, but of a more general offense – “abuse of official information”.