The Korea Federation of Banks (KFB) has called for a stricter oversight of altcoins to ensure "the safety of digital assets," The Korea Herald has learned. According to an official of the association, the KFB wants to be sure that every cryptocurrency exchange can measure the number of digital coins it listed.
"If an exchange deals with too many digital assets, it takes on more risks," the official added.
The KFB's warning comes as the South Korean Police initiated an investigation into crypto exchange V Global. The local police raided 22 locations, including the platform's headquarters in Seoul and employees' apartments, and froze ~$214 million in bank accounts owned by V Global. The company's executive team is suspected of organizing a multi-level fraudulent scheme.
As iHodl previously reported, South Korea might close over 200 cryptocurrency exchanges in Q3, 2021, if they do not follow the regulations. According to Eun Seong-soo, Chairman of the Financial Services Commission, the government has no plans to protect cryptocurrency investors despite the fact it is going to tax them.
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