South Korea is reportedly looking into cryptocurrency staking in the country, according to local reports. The examination is a follow-up to the latest SEC-Kraken drama.
Kraken reportedly had to stop operating its cryptocurrency staking operations as a result of the SEC’s accusations. Additionally, Kraken was obligated to pay $30 million in settlement costs.
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The SEC claims that the exchange’s staking program, through which investors can earn a yield, was not authorized. Now, following the SEC’s crackdown, South Korea is looking to examine the cryptocurrency staking of its domestic exchanges.
South Korea to examine cryptocurrency staking
According to a recent report from News1 Korea, the aftermath of the SEC’s decision has affected South Korea. The Kraken incident has reportedly lured the government to examine the existence or absence of securities. However, there haven’t been any revelations on the date of the examination.
The most recent reports indicate that South Korea intends to introduce a new tracking system. It is being initiated to address the problem of money laundering and to recover funds related to criminal activity.
The system for tracking virtual currency will keep track of transaction information, gather data, and also keep an eye on the source of funds. In the first half of 2023, the system is anticipated to go live. By the second half of 2023, the South Korean ministry also intends to introduce a stand-alone tracking and analysis system.