During a National Assembly meeting on Thursday, a lawmaker stated, “There is intelligence that FSS staff sold all of the virtual currency that they invested in just prior to the announcement of the government’s measures.”
FSS Chief Choi Heung Sik and Hong Nam-Ki, the director of the Office of Coordination, confirmed the report.
Mr. Hong said, “We have confirmed that some public officials have done such an act.” On the other hand, Mr. Choi said they are investigating the case.
The Korean Public Service Ethics Act prohibits public officials from stock trading to avoid misuse of internal information. However, the law does not cover cryptocurrency, which is currently not considered as a financial asset or a legal currency.
The FSS does not have a regulation or code of conduct related to cryptocurrency trading. However, the misuse of internal information could still result to punishment, according to a senior official at the agency.
South Korea’s central bank says cryptocurrency is not a legal currency
On Thursday, the FSS chief said they considering shutting down all cryptocurrency exchanges or only those violating the law.
