South Korea’s financial regulators are reportedly planning to review cryptocurrency staking services on local exchanges following recent crackdowns from the U.S. Securities and Exchange Commission (SEC).
See related article: Be careful what you wish for? Regulators pick up pace in the crypto industry crackdown
Fast facts
- South Korean authorities told local media outlet News1 that crypto staking services have become scrutinized overseas, and local services will be examined. They did not disclose the timeline of their investigation.
- South Korea’s probe on its local sector follows a series of crackdowns by the SEC on staking services and crypto-related products that the agency alleges are unregistered securities.
- Last week, U.S. cryptocurrency exchange Kraken shut its staking programs after the SEC accused the company of violating securities law.
- On Monday, the New York Department of Financial Services ordered Binance USD (BUSD) developer Paxos Trust Company to halt the issuance of its stablecoin.
- Separately, Paxos has received a notice from the SEC that alleged that the BUSD stablecoin is an unregistered security.
See related article: South Korea unlikely to push out crypto regulation before the U.S., authority says