• Employees at Bithumb are no longer allowed to trade Bitcoin on the platform

  • Bithumb, a South Korean cryptocurrency exchange, has prohibited its employees from trading bitcoin using corporate accounts.

    The South Korean market announced that it is cracking down on insider trading. Bithumb will use continual monitoring, audits, and internal reporting to ensure that its staff follow the new standards.

    Bithumb said it has already barred its workers from trading cryptocurrency during working hours and from trading coins that had only been launched for three days.

    South Korea’s Financial Services Commission notified the country’s biggest crypto exchanges in a closed-door conference last month that it wanted to outlaw so-called cross trading–in which exchanges buy and sell the same asset without registering the trade–to prevent price manipulation.

    Exchanges were angered by the proposed rule, claiming that they would have to spend money running separate operations in order to continue cross-trading.

    The Commission strengthened laws around cryptocurrency transactions in April to prevent people from taking advantage of Bitcoin’s so-called “kimchi premium.” Financial institutions in South Korea must now screen for unlawful crypto trades and report suspicious transactions to the Financial Intelligence Unit of the country.

    The FSC established penalties in March for crypto exchanges that fail to notify suspicious transactions or keep records of user transactions, with fines of up to $52,000 per infraction.

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