The collapse of the cryptocurrency exchange FTX and the events behind it cause regulations to tighten even more. In a recent move, Bitcoin exchange Upbit has banned staff and families from trading crypto. Now it is a matter of curiosity that other Korean exchanges will not follow this step taken by Upbit for risk management.
Bitcoin exchange Upbit resorts to proactive measures
According to the latest reports, the South Korean company Dunamu, which operates the Bitcoin exchange Upbit, has taken an important step. Dunamu prohibits its managers and employees, including family members, from trading in cryptocurrencies. Dunamu had previously imposed the trade ban only for its staff and employees. Now it is extending the ban to include the families of its managers and employees. The crypto company says it is doing this to fulfill its social obligation.
Local media in South Korea on Tuesday reported that the measure was taken as part of an effort to promote ethical management in the crypto industry. A spokesperson for Dunamu officially released the following statement:
We have strengthened the regulation since August to be worthy of our status as the most trusted digital asset exchange meeting global standards.
Meanwhile, as you follow on Kriptokoin.com, in September 2021, the government revised the law to place restrictions on crypto trading for crypto businesses as well as their managers and staff. With this, it aims to increase transparency. It also wants to protect users from harm as a result of price manipulation by crypto businesses.
More checks and penalties for exchanges
Dunamu also goes a step further by partially restricting its staff from trading on other exchanges. It only allows 12 crypto transactions, which are among the largest in terms of total market capitalization. In addition, annual crypto purchases are limited to a maximum of 100 million won. That equates to about $75,000. They are also required to record quarterly trading activities and report them to the relevant authorities.
Meanwhile, in case of violation of the regulation, there is a fine of 100 million won for the culprit. It is even possible to suspend business activities. The financial watchdog in South Korea issued a similar warning last month. Accordingly, he recommended that local companies entering the crypto industry do so with extreme caution.
As Upbit sets the standard in the industry, will other Korean exchanges follow suit? Now, this question becomes important. More recently, Upbit noticed a community or knowledge gap in the country’s crypto markets. That’s why he created a ‘digital asset guide’ to promote ethical investing practices.
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