South Korean prosecutors are investigating local cryptocurrency exchanges for taking bribes to list certain tokens. The Seoul Southern District Prosecutors' Office will expand the probe to other exchanges if more evidence is found. Lax regulation in the crypto sector has allowed the illegal backdoor listing of cryptocurrencies. A former employee of Coinone was arrested last month for allegedly accepting around $1.5 million in bribes from brokers commissioned by token issuers to list around 25 cryptocurrencies on the exchange. Manipulating token listings through bribes is common practice in the South Korean crypto sector. South Korea has yet to establish a legal framework for the listing and delisting of cryptocurrencies on exchanges. The top five exchanges have formed the Digital Asset eXchange Association to prevent unfair trade acts from the digital asset market.
(By DANNY PARK)
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