According to the news site News1 Korea, the South Korean cryptocurrency exchange Korbit decided to keep an eye on both its staff members' and their families' Korbit accounts.
In order to improve internal control procedures, Korbit declared on January 16 that it will now keep an eye on the family exchange accounts of executives and workers.
Korbit's CEO, Oh Se-jin, stated:
“The implementation of monitoring the family accounts of our employees is part of our efforts to raise Korbit’s internal control standards to the level of traditional financial institutions.”
Executives and employees of virtual asset exchanges are prohibited from trading virtual assets on the exchange for which they are employed, according to the Enforcement Decree of the Specified Financial Information Act (Special Act). The law does not, however, extend to the relatives of executives and workers.
In response, Korbit made the voluntary decision to exercise internal control over employee families' accounts, including those of brothers and sisters. Family members of the company's leaders and employees will now need to submit their financial information to Korbit.
Additionally, the exchange has improved all internal control measures, including those that forbid unfair business practices and conflicts of interest. After giving it some thought, the Code of Ethics was updated, and staff members agreed to uphold it.
The Upbit exchange's operator, Dunamu, a South Korean corporation, had forbade family members of its executives and workers from trading cryptocurrencies in August.
The move is being made, said the corporation, as part of an effort to advance ethical management in the cryptocurrency sector. Dunamu extended the restriction, which was previously restricted to its personnel and employees, to cover the families of company executives and workers as part of its social responsibilities.