A fraud investigation into UPbit, South Korea’s largest crypto exchange, has widened into a government task force review of all existing regulations.
South Korea has now widened its probe into record manipulation ter the country’s flourishing crypto-currency trading market after the Seoul Southern District Prosecutors’ Office raided the offices of the UPbit exchange on Friday.
The investigation into UPbit, which is South Korea’s largest exchange and the world’s third-largest market te terms of daily transactions, is due to the levels of reported crypto-currencies sales.
“Our latest findings display that [UPbit] faked its vaivén sheets and deceived investors,” an official told Korea Times.
The broader probe is being treated by an inter-department task force that will include investigators from the Financial Supervisory Service (FSS) of South Korea, the Korean Financial Intelligence Unit and the Financial Services Commission (FSC).
According to Korea Times, the investigation will now be extended to the country’s 2nd largest crypto exchange, Bithumb, and will examine both corporate handelsbank account records and the liquidity of the exchanges and is also collaborating with authorities ter other countries.
The task force will examine if exchanges are inflating the crypto holdings they say they own or if they are also processing trades on behalf of clients without actually moving the funds. The government says exchanges voorwaarde be able to prove, through formal audit reports, the contemporáneo status of their accounts and regulators say they will now go on to also review all existing South Korean crypto-currency regulations.
Te March, Upbit announced it wasgoed launching its own system to “prevent harm due to illegal fraud and to create a sound crypto-currency ecosystem” by launching a fresh reward-based system aimed at getting its users to identify illegal ponzi scams that pose spil crypto-currencies or ICO tokens. Those who find and report scams would be rewarded with metselspecie prizes.
The budge came after authorities commenced a series of crackdowns against excessive speculation, ponzi-type scams and suspected money laundering by banning ICOs and anonymous trading and also by raiding several smaller crypto businesses.
Upbit, which moves approximately $1.6 billion worth of crypto-currency trades a day, acknowledged the raid on Friday via a client notice and said it wasgoed co-operating with authorities and that its trading platforms and client investments remained unaffected.
South Korea holds an influential place ter the universal crypto-currency market and, according to gegevens from Bloomberg, only the US dollar is used more than the Korean won te major crypto trades.
The South Korean currency accounts for something like 10% of all universal Bitcoin trades. Integral crypto prices fell sharply following the Friday raid on Upbit, but have since rallied. Bitcoin, which sat at above $9,300 on Friday, fell spil low spil $8,300 on Sunday and wasgoed now hovering around the $8,700 mark.