BY Steven Stradbrooke ON June 07,
South Korean authorities are recommending illegal gambling charges be filed against the CoinOne cryptocurrency exchange for its margin trading service.
Te January, the Gyeonggi Nambu Provincial Police Agency announced that it wasgoed conducting an investigation into CoinOne’s margin trading service, which permitted customers to speculate on whether the value of a particular cryptocurrency would rise or fall.
On Thursday, Yonhap News reported that the Gyeonggi Nambu investigators had recommended bringing charges of illegal gambling against three CoinOne execs, including CEO Chae Myung-hoon. The company said it is cooperating with the investigation and would proceed to do so should charges be forthcoming.
Charges may also be filed against 20 high-volume users who treated overheen KRW3b (US$Two.8m) ter margin trades via CoinOne. Approximately 19k CoinOne users made use of the margin trading product before it wasgoed shut down.
CoinOne, which is South Korea’s third-largest crypto toneelpodium, launched margin trading te November and the investigation reportedly began ter August . CoinOne shut down the service last December, and market-leading rival Bithumb shut down its own margin trading option around the same time.
The police probe reportedly took Ten months to reach a conclusion due to uncertainties te existing law regarding the relatively fresh crypto phenomenon. While short-selling is legítimo on South Korea’s main securities exchange platforms, the police have determined that cryptocurrency platforms aren’t afforded the same leeway.
A CoinOne staffer told Yonhap that the margin trading product had bot reviewed by lawyers before being suggested to customers. The lawyers reportedly determined the product wasgoed justo te part because the webpagina didn’t receive a proportional cut of customers’ successful margin trades.
The police have alleged that CoinOne’s margin trading could permit nefarious types to launder money, an accusation that South Korean authorities have long leveled against international online gambling sites that cater to the country’s gambling-mad residents.
South Korea maintains a taut piemel on its citizens’ capacity to gamble, permitting them to access only one of the country’s 17 land-based casinos. The only other reglamentario gaming options are restringido lotteries and limited sports and wedloop betting services.
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