South Korea goes after digital currency staking services following Kraken’s debacle

South Korea’s financial regulators are keen on examining the staking services of digital currency operators in the aftermath of the fiasco between the U.S. Securities and Exchange Commission (SEC) and Kraken.

2

The Financial Service Commission will begin a full-scale review of staking among exchanges operating in the country, news outlet News1 reported. At the moment, details and the direction of the investigations remain unclear largely because of the lack of staking regulations in South Korea.

“I know that it (staking) has been a problem overseas recently,” an unnamed official told the news outlet. “The position is that there is nothing to be a problem because nothing has been done.”

The move comes after the U.S. SEC reached a settlement arrangement with Kraken exchange amid the threat of legal action. The settlement sees Kraken agree to terminate its staking program for failing to register with the SEC and pay the sum of $30 million.

While the move sparked widespread criticism from all quarters of the virtual currency space, there were lingering fears that other jurisdictions might mirror the U.S. securities regulator’s move. With South Korea confirming investigations into staking services, industry participants are bracing for more countries to follow the same path.

“It’s becoming clear from a pattern across financial regulators and the White House that the subtext in the administration’s policy toward crypto is that it should be choked off,” J.W Verret, a law professor at George Mason University, said.

Majority of South Korean exchanges do not provide staking services, while exchanges with the feature argue that they have satisfied the requirement of the law during reporting under the “Special Financial Transactions Act.” Authorities have since poked holes in their argument, saying that the reporting did not consider staking, rather, it focused on business reporting on trading brokerages.

The crusade of securities regulators

The U.S. SEC has been waging war on digital currencies, hoping to envelop the asset class under the umbrella of securities. Days after the Kraken debacle, the SEC notified Paxos that its BUSD stablecoin has been operating as an unregistered security.

Paxos immediately announced that it would “cease issuance of new BUSD tokens” on February 21 amid an uproar in the local ecosystem. Binance founder Changpeng Zhao took a swipe at the SEC’s decision on the grounds that it did not meet the requirements set out in Howey’s Test, saying, “If BUSD is ruled as a security by the courts, it will have profound impacts on how the crypto industry will develop (or not develop) in jurisdictions where it is ruled as such.”

Wahid Pessarlay(2023.02.18) “South Korea goes after digital currency staking services following Kraken’s debacle”
retrieved from https://coingeek.com/south-korea-goes-after-digital-currency-staking-services-following-kraken-debacle-report/

2 COMMENTS

  1. GET RICH WITH BLANK ATM CARD, Whatsapp: +18033921735

    I want to testify about Dark Web blank atm cards which can withdraw money from any atm machines around the world. I was very poor before and have no job. I saw so many testimony about how Dark Web Cyber hackers send them the atm blank card and use it to collect money in any atm machine and become rich {DARKWEBONLINEHACKERS@GMAIL.COM} I email them also and they sent me the blank atm card. I have use it to get 500,000 dollars. withdraw the maximum of 5,000 USD daily. Dark Web is giving out the card just to help the poor. Hack and take money directly from any atm machine vault with the use of atm programmed card which runs in automatic mode.

    You can also contact them for the service below

    * Western Union/MoneyGram Transfer

    * Bank Transfer

    * PayPal / Skrill Transfer

    * Crypto Mining

    * CashApp Transfer

    * Bitcoin Loans

    * Recover Stolen/Missing Crypto/Funds/Assets

    Email: darkwebonlinehackers@gmail.com

    Text & Call or WhatsApp: +18033921735

  2. Btc Recovery Experts / Recovery Masters

    I was able to recover my stolen Bitcoins, thanks to a super services rendered by RecoveryMasters, true professional Hackers. their services are the only one I’m confidently recommending because  they have best customer care; they were not only outstanding responsive but also very patient with me even though l asked a lot of questions. I gave them all the necessary information to help trace and recover my Coins and they did just that. I really would recommend them. One can get into contact with them through their email:   (Recoverymasters@email.cz)  whatsapp +1(551) 202-23-35  

LEAVE A REPLY

Please enter your comment!
Please enter your name here