S. Korea Bans Virtual Asset Services Staff From Trading Their Platform’s Tokens

Just days after the registration deadline for VASPs, South Korea announced another regulatory requirement.

AccessTimeIconSep 29, 2021 at 7:35 a.m. UTC
Updated Sep 29, 2021 at 1:57 p.m. UTC

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

South Korea banned virtual asset services providers (VASPs) and their staff from trading tokens they issue, the country’s Financial Services Comission (FSC) said in a Wednesday statement.

  • Crypto services providers must set up internal processes for the conflict of interest rules within a month. Those that don’t will be facing suspension of business and up to KRW 100 million (US$85,000) in penalties.
  • VASPs that serve South Korean customers had to register with the FSC’s anti-money laundering arm by this past Friday. Most crypto exchanges did not make that deadline and suspended operations. Only four managed to fulfill all the criteria so they can offer trading in Korean won.
  • The conflict of interest rule was passed at a cabinet meeting on Tuesday, and seeks to prevent damage to users as well as increase transparency in the industry, the FSC said.

Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

CoinDesk - Unknown

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC