- South Korean financial authorities have been inspecting the crypto-staking service environment of domestic virtual asset exchanges.
- The inspection has resulted from the aftermath of the US Kraken debacle.
- No accurate details on the timeline and the procedures of the inspection were provided.
As per the latest report, the South Korean financial authorities have been looking into the crypto-staking service market. The inspection of the crypto staking service environment of domestic virtual asset exchanges resulted from the aftermath of the US Kraken.
Reportedly, no accurate details on the timeline and the procedures of the inspection were given by officials. But, the inspection of the crypto staking market could directly affect many legal agreements.
As per the report, the financial authorities’ inspection would be conducted moderately as no malpractices have been registered in Korea. Notably, crypto staking had not been established by Korean regulation when compared to other common digital asset-related operations.
Furthermore, the report stated that the crypto community’s fear about the possible outcome of the latest court deal between the United States Securities and Exchange Commission (SEC) and Kraken has been materializing. The South Korean regulators intended to inspect the operations of crypto staking services followed by their American counterparts.
An unspecified financial authority official commented about the staking service:
I know that it has been a problem overseas recently … The position is that there is nothing to be a problem because nothing has been done.
The settlement between the SEC and the Kraken crypto exchange kickstarted the global discussion on crypto staking. The crypto staking procedures were then stopped by Kraken with an agreement to pay $30 million as a fine.
Furthermore, Kraken’s timely move to halt the crypto staking was widely addressed not only by the SEC’s acting commissioner but also by the entire American crypto community.
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