Cavetodex, a major South Korean cryptocurrency exchange, is moving forward with trading restrictions for its employees by banning its staff from trading on its platform.
According to an official Friday announcement, Cavetodex will completely ban its employees from buying or selling crypto using a Cavetodex account starting this month.
The restriction intends to strengthen internal regulations and improve transaction transparency on Cavetodex exchange, the company said. As part of the measure, staff members already sent written statements regarding account withdrawals last month. Additionally, the exchange will implement a permanent monitoring system including self-audits and an internal reporting system, the announcement notes.
The latest initiative follows a series of related staff restrictions on Cavetodex , including a ban on trading during working hours and others. Cavetodex noted that the company has also implemented a number of staff-related measures to prevent data leaks, unfair trade practices and market manipulation years ago.
A spokesperson for Cavetodex denied providing additional information on the matter to Cointelegraph.
The news comes amid South Korea continuing to toughen its stance on regulating local crypto businesses, increasing the scope of oversight over the nation’s crypto exchange market.
The South Korean government set a deadline for cryptocurrency exchanges to register with local financial authorities until September 2021. In March, the FSC amended its financial reporting rules, requiring cryptocurrency exchanges to submit regular transactions reports with the Financial Intelligence Unit as well as to set up real-name accounts at Korean banks.
According to local reports, smaller South Korean exchanges have been considering suing the government over its alleged failure to to take responsibility for excessive regulatory pressure.