Bithumb, the largest cryptocurrency exchange in South Korea, has banned its employees from trading cryptocurrencies using internal accounts. The statement issued by the firm stated that the ban was made to prevent insider trading from employees of the firm.
The firm had initially issued a statement to its employees urging them to withdraw all their funds from their internal accounts by the end of June. This would ensure that the ban on the said services will not inconvenience employees. Starting July, no one in the company was permitted to hold funds in Bithumb.
“From this month on, we will strictly manage whether or not employees comply with the regulations through continuous monitoring, self-audit, and internal system operation,” said the statement.
In the statement, Bithumb also stated that it was looking to acquiring an International Standard Compliance Management System (ISO 37301) certification. The firm was conducting training for its employees to strengthen their compliance and internal control systems.
Moreover, Bithumb also stated that it was strengthening the measures already in place to prevent sensitive information from being leaked. Other measures included maintaining fair trading practices and doing everything possible to prevent market manipulation.
Last year, Bithumb was under investigation for alleged fraud. Lee Jung Hoon, the chairman of the exchange, appeared before the Seoul Metropolitan Agency to speak of the fraud and give a statement on his investigation. The firm was under scrutiny for offering its native token, BXA, where authorities believed investors were defrauded. However, the exchange has maintained a clean image from any financial misconduct.
Morgan Stanley Buying a stake in Bithumb
In March this year, close sources from Bithumb revealed that Morgan Stanley could be buying a stake in the exchange. Apparently, the Wall Street giant was negotiating with the relevant parties to purchase a significant stale in the company.
The source also revealed that the firm had also discussed the matter with Vidente, a firm that holds a 10% stake in Bithumb. The amount of stake that the investment bank would be buying in the exchange is estimated to range between $254 million to $441 million.
However, none of the involved parties has come forward to give an official statement on the matter or deny the allegations.