Several South Korean officials were caught in insider trading of tokens. They sold all of their cryptocurrency holdings just before South Korean regulators announced new restrictions. The Financial Supervisory Service (FSS) is currently investigating the matter.
“We have confirmed that several officials were involved in such schemes. It is unacceptable for government officials to influence the market and profit from it,” said FSS Governor Choi Hong-sik.
At a Financial Assembly Committee meeting on Thursday, January 18, financial watchdog officials confirmed that some officials had invested in cryptocurrencies and sold them shortly before the government announced regulatory measures, local media reported. The Korean Public Service Ethics Law “explicitly prohibits public officials from stock trading to avoid misuse of insider information.”
However, since cryptocurrency does not currently fall under the definition of a financial asset, it is not subject to ethics law. Not long ago, FSS workers asked government officials to “refrain from trading cryptocurrency, as this could be extremely negatively perceived by society.”
On Tuesday, FSS also announced the creation of “its own equivalent of a digital currency” and a “cryptocurrency checkpoint.”
According to https://news.bitcoin.com
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