South Korean regulator investigates cryptocurrency accumulation services

The Republic of Korea's main monetary regulator is conducting a probe into local cryptocurrency exchanges. Cryptocurrency exchanges are excited that new rules about betting have begun to appear.
South Korean media outlet News1 made it clear that the Financial Supervisory Service (FSS) "the other day" requested the cooperation of individual exchanges in the state to investigate staking processes.
Based on News1 news, at least three of the state's four major exchanges - Upbit, Bithumb, Korbit and Coinone - indicated that the FSS had recently approached them about the betting issue.
An anonymous employee of some of the exchanges said that the Service sent the trading floor a "request for information regarding betting services."
An employee of another trading floor said they provided information about staking services to the FSB "at the end of February" this year.
The oversight service would not comment on whether they would apply the updated rules on rates. However, their delegate alerted that the regulator is conducting research on the topic, and thought that a complete ban on local betting is not taken into account at this time.

Why is the South Korean regulator interested in cryptocurrency hoards?

Earlier this month, U.S. regulators took legal action against betting providers. Financial Mecca Kraken has come under scrutiny for likely imminent security threats, and Coinbase CEO Brian Armstrong says the Securities and Financial Mecca (SEC) wants to "insulate itself from cryptocurrency betting in the United States."
Media noted that this move by the SEC prompted a response in Seoul. Apparently, the financial watchdog is trying to see how local betting providers enforce the law.
The local financial meccas have expressed that they are not trying to use consumers' savings to pay out betting revenue and that their financial meccas tokens are being saved away from tokens that are owned by consumers.
Regulators, however, are probably thinking about whether it is possible to legally define betting assistance as a form of commercial activity with securities.
The development of action in the U.S. regarding the marking of bookmaking services as commercial securities activities could have an effect on the outcome of the legal battle in South Korea.
The country's prosecutor's office called the case between the SEC and Terraform Labs, as well as CEO Do Kwon, a "good development," according to a statement issued mid-week. The SEC accused Kwon and the company's management of violating securities laws. The regulator is currently awaiting an upcoming response from the U.S. higher authorities.