South Korean Prosecutors Raid Three Seoul-Based Crypto Exchanges

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Wall Street Journal recently reported that the South Korean prosecutors had carried out raids in at least 3 Crypto-exchanges in in the country over the month of February confiscating financial records, mobile phones, computer hard drives etc.

Raids on Rogue Crypto-Companies

The raid was launched after an investigation conducted earlier in the year revealed some of the clients Crypto-holdings were transferred to bank accounts that belong to the exchange managers.

Jeong Dae-Jeong, the head prosecutor of the investigations stated that the 3 days raid took place at the Korea’s capital in Seoul. However, he did not specify the value of the funds that were transferred and the exchanges which were in target.

The news have come amidst scrutiny of businesses dealing in Cryptocurrencies in the South Korea as the country was in a move to tone down continued speculations and criminal activities that might have arose from the platform such as money laundering.

According to Jeong It was however still unclear on whether the transactions would be termed as an embezzlement.

Ban on ICO’s

Initial Coin offerings were banned in September last year, however recent reports suggest a possibility of softening the stance.

According to a report by the Wall Street Journal, after the raid, the investigators were able to find that one exchange purchased Bitcoins from other Crypto exchanges while using the Customers Crypto funds.

South Korea being the largest Cryptocurrency trading Market, its demand for Cryptocurrencies resulted to the currency trading at higher prices that were nearly 30 percent higher than the currency traded in other countries.

The South Korean government has been developing various regulations for the Crypto market amidst the high speculation environment. This included raising a ban on anonymous trading, which began back in January.

The ban has also been made to have a prohibition on the government officials trading in or holding Cryptocurrencies after an investigation conducted early this year revealed some government officials from South Korea’s financial supervisory services were implicated in an insider trading scam.

The officials were alleged to have been buying and selling Cryptocurrencies based on the information of potentially upcoming Crypto regulations.

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