South Korean financial regulators plan to probe into crypto staking services on local exchanges considering the recent Kraken-SEC case.
According to a local South Korean publication, Korean financial authorities are looking into the staking services market in the country, but authorities have yet to disclose the timeline of their investigation. As it stands, crypto staking is not defined by Korean regulation. According to reports by Cointelegraph, an unnamed official said to journalists:
The fears of the crypto community about the possible repercussions of the recent court deal between the United States Securities and Exchange Commission (SEC) and Kraken are starting to materialize. Following their American counterparts, South Korean regulators intend to examine the crypto-staking operators in the country.
Adding,
The position is that there is nothing to be a problem because nothing has been done.
Staking Services on Edge Following SEC Crackdown
South Korea’s probe into staking services follows the recent crackdown on Kraken by the SEC. The SEC alleges that Kraken’s staking program was an unlawful offer and sale of securities. The exchange reached a settlement with SEC in which it agreed to pay $30 million in fines and to shutter its staking program.
The SEC’s enforcement of Kraken has sparked concern and criticism by the crypto community, and one of its own commissioners criticized the move. SEC Commission Hester Peirce called the SEC out for being “hostile to crypto” and accused the agency of not thinking through the implications for staking programs in order to put out guidance. She said that the agency instead merely chose the route of enforcement action.
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