Analysis of Crypto Staking Services in South Korea Prompted by Kraken Incident

On Feb. 15, according to reports issued by a local publication, South Korean financial authorities are examining the staking services sector.

Worries among the crypto-focused population about the implications of the arrangement between the US’s SEC and Kraken have begun to come to light. Taking after their US counterparts, South Korea’s governing bodies are planning to investigate crypto-staking firms operating in the country.

“The position is that there is nothing to be a problem because nothing has been done.”

No timeline or techniques of the assessment have been disclosed, yet it might impact certain legislative rulings. As opposed to typical operations with digital assets, there is no legal definition in Korea for crypto staking at the present time.

The worldwide dialogue on crypto staking began with a Feb. 9 agreement between the SEC and Kraken digital money trade. Kraken consented to pay a $30 million punishment and end its staking program. This move was intensely censured by the American digital currency network, with even the SEC’s acting executive reproaching the office for its ongoing activities.

J.W. Verret, an associate professor from George Mason Law School, in his article for Cointelegraph, alerted readers to the SEC’s plan to employ their Kraken strategy against staking protocols in general. He advised caution.

A pattern is emerging among financial regulators and the White House indicating that their policy goal when it comes to crypto is to suppress it.

In February, South Korea’s Financial Services Commission provided a legal framework that defines digital assets to be covered by securities regulations. This legislation considers securities as investments where no further payments are necessary after the original investment.

The amount of Ethereum held on exchanges can be seen in the following image from Santiment. Additionally, the burn rate of Ethereum can be seen in the image below from the Beacon chain. Ethereum supply on exchanges. Source: Santiment