Cryptocurrencies have been in the news a lot over the last several weeks and couple of months since the start of this new year in January. From increased regulatory oversight from various countries and their regulatory bodies to various global cities, countries and municipalities considering initial coin offerings (ICO), digital coins have been in the spotlight.
There have also been some high profile hacks of different cryptocurrency exchanges, like Binance, and other illicit activities. These have prompted nations like South Korea, Japan and even Australia to announce new regulatory laws to govern these exchanges. These new regulatory oversights are in place to ensure mainly safety of funds and keep illicit activities like embezzlement and money laundering from occurring.
Thursday, according to a Reuters News report, four cryptocurrency exchange executives from South Korea were arrested on Thursday. They are currently being questioned by the authorities after several billions worth of won are alleged to have been embezzled. This was released to the press by the state prosecutors.
Kim Ik-hwan, the Chief Executive Officer of Coinnest. the South Korean Cryptocurrency Exchange, was one of the executives to be detained.
As of right now, Coinnest was not immediately available for comment. The cryptocurrency exchange’s website appear to be operating as normal.
South Korean Cryptocurrency Exchange In Spotlight
the detainment is the first and only time so far, employees of any local digital currency or exchange company have suffered detainment in South Korea. South Korea is the world’s third largest country for trading cryptocurrencies.
However, authorities in South Korea, in the past, have state that there could be strong actions taken against so called unfair and illegal cryptocurrency trading movements on the South Korean Cryptocurrency Exchange. These comments came following the Bitcoin gold rush in November and December last year. That was when the digital coin soared to an all-time high then fell back to earth during days of extreme trading volatility.
Other government agencies, around the world, are now in the process of designing and implementing new and fully inclusive laws for the cryptocurrency markets, exchanges and related digital token businesses. As of Wednesday, this week, Australian cryptocurrency exchanges will be required to register and comply with anti-money laundering/counter-terrorism financing (AML/CTF) laws and requirements.