South Korean officials have been caught trading cryptocurrencies just before the government announced crypto regulatory measure, reported a local media. They sold all of their holdings and earned profit before the regulations were announced.
Financial Supervisory Service (FSS) Governor Choi Heung confirmed that they have confirmed some public official shave done such an act. After misuse of public information they have called for “thorough investigation and punishment. Chosun further,
“It is expected that the moral hazard controversy will spread if the government uses the inside information and profits from virtual currency transactions while the financial authorities publish a hard-line policy saying that ‘the cryptocurrency transaction is gambling’.”
Chosun also said that the Korean Public Service Ethics Act “restricts stock trading by public officials in order to prevent misuse of internal information”. Also, FSS emphasised that their employees shouldn’t trade cryptocurrencies as it will be difficult for public to understand ethically.
FSS announced creation of Virtual Currency Task Force with two division – virtual currency counterpart and virtual currency checkpoint. The former is cryptocurrency-related tasks while latter one will work as consultation body.