In some nations, crypto-based companies seem to be failing to comply with the regional regulations. However, the primary reason behind failed compliance is the harsh and tough set of rules. As per a recent update, Bithumb a South Korean centralized cryptocurrency exchange has been facing an interrogation from regulators and parliamentarians.
The exchange is facing trouble over the ownership structure and allegedly some other allegations related to its upcoming IPO which is assumed to be listed by the second half of the approaching year.
As reported by a regional media outlet, the National Assembly of South Korea has raised concern over Bithumb and demanded that financial authorities closely monitor it. There are also allegations that the firm has been involved in illicit activities.
It is additionally noted that the Financial Service Commission of South Korea is planning to review the allegations of the assembly and will likely restructure or revise the regional laws to oversee them keenly.
Since the past few quarters, the regulators of the nation have been cracking down on crypto-based companies.
Crypto-Based Companies Remain in Controversies Over Ownership!
Bithumb Holdings, the parent company of the popular South Korean cryptocurrency exchange, has a complex ownership structure. The largest shareholder of Bithumb Holdings is Lee Jung-hoon, the exchange’s founder and former chairman.
Lee Jung-hoon maintains control of the holding company through various unlisted entities. These include DAA, which holds a 30% stake, BTHMB Holdings with a 10% stake, and other unlisted companies that collectively hold 25%.
Kwon Seong Dong lawmaker with the People Power Party quoted in his inquiry that “in the case of Bithumb, there were issues pointed out that “In the case of Bithumb, there were issues pointed out in the 2022 National Assembly audit, such as major shareholders being tried on fraud charges or being cornered by embezzlement and stock price manipulation, but the financial authorities still do not even have a proper grasp of this.”
Available data states that roughly 11% of the population of South Korea has been involved in cryptocurrency trading. Per estimates, SA is among the top three nations in the cryptocurrency market.
Crypto Market Price Updates
When writing the cryptocurrency market capitalization was at $2.31 trillion surging over 5 percent in the past 30 days. At the same time crypto market volume fell 13.60% in the past 24 hours reaching $72.47 billion.
Bitcoin prices have gained major traction in the past few weeks growing 97.54% in the past 52 weeks until writing was trading at $67,485. At the same time, its market capitalization was $1.33 trillion which grew roughly 10% in the past few months.
The intraday gainers’ list is ruled by cat in a dogs world (MEW) trading at $0.1118 surging 7.72%, followed by Raydium (RAY) at $2.96 with a surge of 4.90%, Chainlink at $11.70, Bitcoin Cash at $365.67.
At the same time, the list of past 24 hours’ losers is led by Popcat which lost 9.72% reaching $1.46, and Mog Coin trading at $0.051836 losing 7.52%. Ethereum prices seem to be tumbling below the mark of $3000 and its trading volume fell more than 15% reaching $15.58 billion.
