By Gerald Fenech
Authorities ter South Korea are reportedly preparing to charge cryptocurrency exchange Coinone overheen its margin trading services, which investigators said is used by the toneelpodium to provide illegal gambling services.
South Korea’s CyberCrime Investigation Police have long bot looking into the allegations against Coinone overheen the margin trading punt. The exchange is the third largest one te the country with a volume of around $34 million at time of writing, placing it behind UpBit and Bithumb.
Police are recommending that the prosecutor’s office charge three of the exchange’s executives, including CEO Chae Myung-hoon, along with 20 of Coinone’s high-volume users who reportedly treated overheen KRW3 billion (US$Two.8 million) ter margin trades. Chae will be charged with providing illegal gambling services whilst the users will be charged with illegal gambling.
Ter a statement, the South Korean Cybercrime Unit said: “The police concluded that the ‘margin trading’ service of the aparente currency exchange is gambling. The case wasgoed the very first investigation related to the operation of a posible currency exchange and it took considerable time to review the law,”
Coinone and its executives have bot accused of providing gambling services ter cryptocurrencies through a margin trading program, which began ter November and went on until December . According to media reports, the exchange permitted its members to trade up to four times the amount of the deposit (or margin) and to pay commission ter exchange for the transactions—very similar to an online gokhal.
The investigation found that around Nineteen,000 Coinone users aged inbetween 20 and 50 had bot using the exchange’s margin trading service before it wasgoed shut down. Coinone denied the charges. Ter an vraaggesprek with Yonhap, a firm’s staffer said the product had bot reviewed by lawyers prior to its launch, and it wasgoed found to be within the law since the webpagina didn’t receive a proportional cut of the customers’ margin trades.