South Korea Initiates Crackdown on Cryptocurrency Staking Services After Kraken Incident
- Akansha Gupta
- February 18, 2023
- Crypto, News
- Blockchain, Crypto
- 0 Comments
South Korea’s financial regulators are taking a hard stance against cryptocurrency exchanges offering staking services, as the country looks to avoid repeating the disastrous saga that has unfolded between SEC and Kraken. An in-depth inspection is set to be launched by the Financial Service Commission to investigate any potential issues with staking in South Korea – a move made even more necessary due to the dearth of regulatory framework on this topic.
What is the Impact of this recent Development?
The recent move by South Korea has had far-reaching consequences in the digital space. While many have expressed shock at this development, there is also an apprehensive expectation that other countries may soon follow suit.
This incident serves as yet another reminder of how difficult it can be to stay compliant in an ever-shifting landscape, where regulations seem to change rapidly without much warning.
The experienced experts, cognizant of the burgeoning crypto-space, are raising alarm bells over the latest actions taken by the world wide administration as recently US SEC also announced plans to take legal action against Paxos and their BUSD stablecoin which has caused a wave of unrest in the crypto community.
Drawing from their personal experience, experts elucidate how such moves can lead to worrying implications for cryptocurrency enthusiasts and businesses alike. According to experts with years of experience in this field, stricter regulations could spell doom for innovators who are already treading on thin ice as far as laws are concerned.
When will the Examination take place?
Currently, no concrete date for a full-scale examination against crypto firms has been set. However, experts have noted that stringent regulatory measures may soon be enacted to ensure the safety and security of user funds.