The South Korean Financial Supervisory Service (FSS) has launched an investigation into the cryptocurrency staking services provided by local exchanges such as Upbit, Bithumb, Korbit, and Coinone. The regulator has sought data from these exchanges that are connected to staking, raising concerns about the possibility of new staking-related laws. On the other hand, a spokeswoman for the FSS has indicated that there are currently no plans to completely ban domestic betting.

Following a similar step by the US authorities, who recently launched a legal fight against the share providers, the FSS has opened an investigation into the matter. Coinbase CEO Brian Armstrong has claimed that the United States Securities and Exchange Commission (SEC) is attempting to “get rid of crypto gambling in the US.” The Financial Stability Service (FSS) has responded to this by stating that it wants to ensure that domestic staking providers adhere to the letter of the legislation.

Despite South Korean exchanges having claimed that they do not use client funds to pay out staking earnings and that they store the exchanges’ own tokens in a separate location from tokens belonging to clients, regulators from South Korea are interested in finding an answer to the question of whether or not engagement services can legally be construed as a form of “securities” trading.

The outcome of the legal disputes in South Korea could be affected by new developments in the United States on the question of whether or not some cryptocurrencies can be considered securities. The latest action taken by the SEC against Terraform Labs and its CEO Do Kwon is being hailed as a “good move” by South Korean judicial authorities. The SEC has filed allegations of “securities” violations against Kwon and other corporate leaders, and the agency is now awaiting a response from the US judicial system.