South Korea to examine crypto staking services following the Kraken case

How informed According to a local publication on February 15, the Korean financial authorities are exploring the market for rate-based services. However, as an unnamed official told reporters:

The crypto community’s fears about the possible implications of the recent legal deal between the US Securities and Exchange Commission (SEC) and Kraken are starting to materialize. Following their American counterparts, South Korean regulators intend to check crypto-staking operators in the country.

“The position is that there is nothing that could be a problem because nothing has been done.”

No details are given about the timing and methods of the examination, but it may affect some legislative decisions. Unlike more common digital asset transactions, cryptocurrency staking is currently not regulated by Korean law.

The global discussion about staking cryptocurrencies began with a February 9 settlement between the SEC and the Kraken crypto exchange. Kraken agreed to pay a $30 million fine and suspend its staking program. The move was widely criticized by the US crypto community and even by the acting commissioner of the SEC.

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In his analysis for Cryptooshala, J. W. Werret, assistant professor at George Mason School of Law, warned of the SEC’s intent to use its Kraken game against staking protocols in general:

“From the practice of financial regulators and the White House, it is clear that the implication of the administration’s policy towards cryptocurrency is that it should be strangled.”

In February, the South Korean Financial Services Commission developed guidance outlining which types of digital assets will be considered and regulated as securities in the country. The law treats securities as financial investments for which investors are not required to make additional payments after their initial investment.

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