South Korean Regulators Eye OTC Crypto Regulation South Korean regulators
look set to turn their attention to the over-the-counter (OTC) crypto market, with indications regulation could be on its way. The nation
has moved to shore up its regulatory system this year in the wake of the so-called “Terra-Luna scandal,” which left thousands
of domestic LUNC investors out of pocket.
The news
has also been dominated by a high-profile political scandal involving token-owning lawmakers. Multiple (similarly high-profile) allegations of the market manipulation
of so-called “kimchi coins” have also rocked the nation.
But thus far, regulation has focused
on centralized crypto exchanges.
P
er Asia Kyungjae, “prosecutors and financial authority officials” are now
“directly mentioning” the “problems of” the OTC market. OTC traders have been implicated with
smuggling and tax evasion charges pertaining to “kimchi premium” trading.
The kimchi premium
is a bull market phenomenon whereby retail BTC prices rise much faster in South Korea than elsewhere in the world. During these periods, South Korean exchanges’
BTC prices can climb to over 30% of the global average.
