South Korean authorities intend to involve law enforcement agencies in the supervision of stock exchanges

Officials and representatives of the crypto business agreed to develop rules that protect investors and involve law enforcement agencies in overseeing the activities of cryptocurrency exchanges.

Member of the House of Representatives from the ruling People’s Power Party of South Korea Sung Il-Jong declaredthat now, against the backdrop of the collapse of Terra, the country does not have effective leverage on crypto exchanges:

“When exchanges break the rules, they must be held legally accountable to ensure that the market functions properly without any problems.”

The deputy was supported by the deputy chairman of the parliamentary commission on financial services, Kim So-Young, and warned the leaders of the Upbit, Bithumb, Coinone, Korbit and Gopax cryptocurrency exchanges present at the meeting about control over their activities by law enforcement agencies:

“We are going to develop close ties with the Department of Justice, prosecutors and police to monitor any illegal activities in the industry and protect the rights of investors.”

Recently, South Korean cryptocurrency exchanges received letters from the Seoul police with a request to block the movement of funds on Luna Foundation Guard accounts in connection with theft. A little earlier, the South Korean authorities and the Financial Supervisory Service (FSS) launched an emergency audit of local cryptocurrency exchanges. The purpose of the audit is to clarify whether investors are sufficiently protected from a repeat of the situation that happened with the stablecoin TerraUSD (UST) and its control token LUNA. South Korea’s national tax agency fined Terraform Labs and its co-founder 100 billion won ($78 million) for tax evasion.