South Korea Considers Banning Staking “Services on Domestic Virtual Asset Exchanges”

South Korean financial authorities are exploring the possibility of implementing a ban on staking services offered by domestic virtual asset exchanges. They held a meeting in Seoul to discuss global trends in cryptocurrency regulation and plans to support and stabilize the national financial market in 2023.

FSC Vice Chairman Kim So-Young stated that a comprehensive analysis of the staking service environment on domestic virtual asset exchanges is expected to begin soon.

In contrast to the US SEC’s targeting of one particular exchange, Kraken, for offering staking services to its customers, the South Korean regulator is considering a nationwide ban on staking services.

Although Kim So-yeon did not provide specifics on the timing and methods of the upcoming examination, she noted that its results could influence legislative decisions. Unlike more common digital asset operations, cryptocurrency staking is currently not regulated by Korean law.

The South Korean crypto community views the FSC’s intention to examine the experience of US regulators as a response to the SEC’s recent sanctions on Kraken’s staking service.