South Korea: The LUNA investigation is leading the FSC to check…

ambcrypto.com:

Financial watchdogs in South Korea are checking commercial banks’ foreign exchange transactions for the illegitimate use of cryptocurrencies.

An unnamed Financial Supervisory Service official said that some of the transactions in question included cryptocurrency exchanges. That is why investigators are looking into any potential connections to currency speculation or money laundering involving digital assets.

While the official didn’t mention the exchanges in question, Shinhan Bank is one of the institutions under investigation.

According to earlier reports from Yonhap News Agency, Woori Bank transacted around 800 billion won ($611 million) on 23 June. On 30 June, Shinhan Bank also took part in a transaction for 1 trillion won.

An FSS representative acknowledged the information, with a Shinhan Bank representative confirming that a regulatory investigation is ongoing. The latter, however, said they were unable to disclose the precise amount of the transaction or its connection to cryptocurrency exchanges since those details can only be made public once the inquiry was over.

The Financial Services Commission is officially pushing for the creation of a special committee on virtual assets. Due to the recent “LUNA incident,” there have been increasing calls for investor safety and the establishment of laws for the virtual asset market.

On the 19th, a high-ranking representative and the FSC confirmed that the latter is now working to establish a special committee for virtual assets. Members of the FSC, representatives from academia and the legal sector will make up the committee. At the earliest, a special committee will be established this month.

Following the failure of the TerraUSD stablecoin, South Korean financial regulators