Korbit has announced that it will monitor the accounts of its employees and their relatives in order to strengthen internal controls.
According to the Ordinance enacting the Special Financial Information Act, those who work on the exchange are prohibited from trading virtual assets on Korbit.
However, this rule does not apply to family members of executives and employees. Consequently, Korbit decided to monitor the accounts of its employees' relatives as a way of reinforcing internal rules, although it is not mandatory. In addition, they are required to report these accounts to Korbit in the future.
Besides, the company further tightened internal controls by banning unfair trading and conflicts of interest, and by making appropriate changes to its code of ethics; employees pledged to adhere strictly to it.
"Monitoring employee family accounts is part of our effort to bring our standard internal controls in line with those of conventional financial institutions," commented CEO Sedgene O.
This is not the first exchange in South Korea to do so: earlier, Dunamu introduced similar rules for its exchange Upbit - a ban on cryptocurrency trading for family members of executives and employees, arguing that the measure was adopted as a way to establish ethical behavior in the cryptocurrency market.As an added measure, Dunamu has even expanded these restrictions beyond just their employees and workers; in doing what they consider to be their social duty, they have also included the families of their employees and executives in this set of rules.
In October 2022, the Financial Services Commission of South Korea began to pay attention to the cryptocurrency wallets of leading investors. All wallets with a balance of more than $3.47 million were monitored. The financial regulator suggested that the larger the wallet balance, the greater the chance of money laundering. In addition, the presence of a large number of stable coins could be seen as a sign of criminal activity.
