- Bithumb, a South Korean crypto exchange, bans its workers from indulging in crypto activities on its platform.
- The new protocols aim to tighten internal regulations.
- The decision by the exchange comes after financial regulators in the country impose crypto restrictions.
The new rule in the platform is according to the official notice issued on the 2nd of July. It came after regulators issued several guidelines targeting crypto exchange businesses in the area. Keep in mind that South Korean regulators have been showing efforts to protect cryptocurrency investors in the country since last year.
According to Back Young Heo, the CEO, their crypto exchange aims to strengthen its internal regulations. That way, it will improve transaction transparency in the platform. The executive highlighted the previous all-ready implemented policies that prohibit sensitive data leakages, market manipulation, and unfair cryptocurrency practices.
Bithumb plans to ban the trading accounts of its employees. With that, the workers would follow the new regulation. Over the past month, sources suggest that staff members sent written notices related to account withdrawal. The platform will also ensure continuous monitoring with internal reporting systems and self-audits.
Keep in mind that this follows after financial regulators in the country decided to monitor the crypto market. They aim to prevent market manipulation, money laundering, and investor protection.
It is undeniable that other exchange platforms will follow suit. The regulators made it clear that the exchanges must adhere to the rules or leave the market.
South Korea with Tight Crypto Regulations
South Korea has been monitoring the cryptocurrency market since a year ago. Their officials have issued new regulations and measures to ensure that crypto traders and investors are safe. Some of the changes include banning privacy coins and a new tax plan.
However, the recent exchange regulation seems like the most crucial change that exchanges have to follow. With the updated requirements, the crypto platforms will have to obtain new permits in Q3.
However, some exchanges chose to suspend their services due to the new rules. For example, the leading crypto platform OKEx decided to leave the South Korean market.
What do you think about Bithumb banning its employees from crypto involvement? Comment in the section below.
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