[Asia Economy Reporter Junhyung Lee] Cryptocurrency exchange Coinone has been cleared of charges by the prosecution. Coinone had been under investigation for gambling charges for providing a margin trading service that allowed users to predict cryptocurrency prices and make money.
The Suwon District Prosecutors' Office announced on the 19th that it had decided not to prosecute Cha Myung-hoon, CEO of Coinone, one director, and the Coinone corporation at the end of last month on charges including operating gambling and violations of the Loan Business Act.
CEO Cha and others were accused of providing a margin trading service to members from November 2016 to December 2017, creating an environment where gambling with cryptocurrency was possible. Margin trading involves predicting the price up to one week ahead and choosing either a long or short position, resulting in either losing or gaining money depending on the outcome.
The police viewed Coinone's margin trading as gambling, considering that although margin trading is similar to credit trading techniques in the stock market, Coinone did not have official authorization from authorities. Subsequently, in June 2018, the police forwarded the case to the prosecution with a recommendation for indictment.
After about three years, the prosecution cleared CEO Cha and others of charges. A prosecution official stated, "We cannot disclose specific details regarding the case of non-prosecution."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
