South Korea’s police have reportedly summoned executives from the largest local crypto exchanges for questioning regarding allegations of favor-seeking and favoritism from a now-independent lawmaker.
Dunamu, Bithumb Executives Summoned By PoliceOn Wednesday, the Seoul Metropolitan Police Agency’s Public Crimes Investigation Unit called former Dunamu CEO Lee Seok-woo and Bithumb officials as witnesses in the investigation of allegations against independent lawmaker Kim Byung-kee.
The reports alleged that Kim had instructed his aides to “attack Bithumb’s competitors” after the meeting with former CEO Lee and a job opening at Bithumb in November. He seemingly affirmed that “Dunamu’s monopoly is a complete problem.”
The lawmaker has been accused of seeking to favor the crypto exchange his son worked for by repeatedly questioning Dunamu “in a manner intended to attack it” during Political Affairs Committee meetings.
The Seoul Metropolitan Police also summoned a Bithumb executive on Tuesday and another Bithumb official on Wednesday for questions regarding the allegations against the lawmaker.
FSC Explores Crypto Exchange Ownership CapLee stressed the need to limit the ownership stakes of controlling shareholders in crypto exchanges, highlighting that existing regulations mainly focus on anti-money laundering and investor protection.
Nonetheless, the proposal has faced backlash from industry players and the ruling Democratic Party of Korea (DPK). According to local news outlets, a joint council representing domestic crypto exchanges, including Upbit, Bithumb, and Coinone, has opposed the cap.
Meanwhile, members of the Democratic Party also expressed their concerns, affirming that similar caps are uncommon and could make South Korea’s framework inconsistent with global regulatory trends and uninviting to investors.
