According to a report that appeared in a local publication on February 15, the South Korean financial authorities are investigating the market for staking services. However, the official who did not wish to be named revealed to the journalists that the stance is that there is nothing to be concerned about because nothing has been done to address the issue.
The crypto community’s concerns regarding the potential fallout from the recent court settlement reached between the United States Securities and Exchange Commission (SEC) and Kraken are beginning to be realized. The South Korean authorities in charge of regulation want to follow in the footsteps of their American counterparts and investigate the crypto-staking businesses in the country.
There was no information provided regarding the timeline or the procedures of the examination; yet, it may have an impact on some legislative decisions. Crypto staking, on the other hand, is not specified by Korean regulation at this time, which is in contrast to more typical operations involving digital assets.
The Global Discussion on Crypto Staking
A settlement reached between the SEC and Kraken crypto exchange on February 9 marked the beginning of a worldwide discussion on crypto staking. Kraken has come to an agreement to both cease its staking program and pay a fine of $30 million. The decision was met with widespread backlash from the crypto community in the United States and even the acting commissioner of the SEC.
The SEC’s aim to deploy its Kraken playbook against staking protocols, in general, has prompted experts to issue a warning about the institution’s ambitions. They feel it’s becoming evident, based on a pattern across financial authorities and the government, that the administration’s attitude toward crypto implies that it should be stifled.
In February, South Korea’s Financial Services Commission issued guidelines that outline which forms of digital assets will be recognized and regulated as securities in the country. According to the law, securities are considered to be forms of investments in the financial market in which the purchaser does not need to make any additional payments following the initial investment.