A politician in South Korean entered into the debate over an unnamed senior financial regulator who wishes to join Upbit, a domestic crypto exchange that’s currently leading the market. The regulator wants to quit his job and join the exchange. Meanwhile, no such issues seem to have popped up in the way of crypto companies in the United States. Serving at the Financial Supervisory Service (FSS) as Deputy Director, the regulator has already submitted his resignation at the agency. However, according to the FSS protocols, the ethics committee of the regulator is permitted to have a say regarding the future job opportunities of their former employees, particularly in cases that may result in a conflict of interest.
Jeon Young-gi, a member of the transport committee of the National Assembly and an MP for the Democratic Party, said in a blogpost that he was ‘opposed’ to such a move because it was clear that high-ranking officials were willing to discard the ethics associated with a public office for the purpose of making greater personal profits. Independent input will also be obtained by the ethics committee from some other government bodies. Jeon urged the regulatory body to rule the opportunity as inappropriate and to uphold some common-sense standards.
He went on to say that the edge of the regulatory sword would be blunted by such a move and the fabric of the South Korean society would be damaged because of a strong connection between crypto exchanges, financial institutions and regulatory agencies. The MP went on to say that the damage would eventually haunt the citizens and consumers. The committee has given no indication about when they plan on giving an answer, but if recent history is to be taken into account, the FSS has a rather uphill battle on their hands.
A Ministry of Justice official recently tried to make a similar move to a crypto exchange and tendered his resignation at the department. However, he was left without a job and gave up his application under pressure even before the ethics committee could discuss the matter. In contrast, there are a number of high-ranking former regulators in the United States, who have taken up positions on various trading platforms. Ripple, the company behind the XRP token, is embroiled in a battle with the Securities and Exchange Commission (SEC). The regulatory agency has taken an issue with the company hiring the ex-chairman of the Commodity Futures Trading Commission (CFTC), Christopher Giancarlo, this week.
Meanwhile, Brian Books, who served at the Office of the Comptroller of the Currency (OCC) as Acting Comptroller and granted banking charters to American crypto banks, is now heading the Binance.US operations of crypto exchange Binance. Likewise, Coinbase had announced earlier this month that Faryar Shirzad, the former Deputy National Security Advisor for the White House, would serve as its Chief Policy Officer. Furthermore, former SEC chairman, Jay Clayton was hired as an adviser by US firm One River Asset Management, valued at $2.5 billion, whose crypto funds are backed by Alan Howard, the hedge fund titan.