Korean Regulator to Shut Down 11 Cryptocurrency Exchanges Ahead of Regulatory Deadline

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South Korea’s apical fiscal regulator volition unopen down 11 cryptocurrency exchanges allegedly engaged successful fraudulent slope relationship schemes, section media reported. Meanwhile, the deadline for each crypto exchanges to comply with the country’s regularisation is drafting adjacent and astir of them person not been capable to conscionable the requirements.

11 Crypto Exchanges Could Be Shut Down

  • South Korea’s apical fiscal regulator, the Financial Services Commission (FSC), volition reportedly unopen down 11 cryptocurrency exchanges, The Korea Herald reported Monday, citing unnamed manufacture sources.
  • The 11 crypto exchanges allegedly utilized fraudulent corporate slope accounts and the FSC plans to notify prosecution and constabulary of the alleged amerciable activities, the sources added, noting that the exchanges volition find it intolerable to get approvals from the FSC to proceed their businesses. The names of the exchanges person not been disclosed.
  • Crypto exchanges indispensable get support from the FSC by Sept. 24 to proceed operations. Some efforts to supply much clip for exchanges to comply with regulations, specified arsenic by People Power Party Congresswoman Cho Myeong-hee, who hoped to widen the deadline until Dec. 24, person been dismissed. The FSC stands by its Sept. 24 deadline, stating that crypto exchanges person already been fixed a six-month grace period.
  • One of the requirements is for crypto exchanges to spouse with section banks to unfastened real-name accounts for customers. However, banks person been reluctant to spouse with exchanges different than the apical four: Bithumb, Upbit, Coinone, and Korbit. Without the quality to connection real-name accounts, exchanges volition person to cease operations.
  • Several mid-sized exchanges person already announced plans to unopen down oregon suspend services, the work conveyed, adding that Darlbit went retired of concern connected July 15. CPDAX said connected July 30 it volition terminate services connected Sept. 1, emphasizing: “It is not a impermanent but a imperishable measurement to adjacent business. Those who person cryptocurrencies successful the relationship indispensable retreat them earlier 3:00 p.m. connected Aug. 31.”
  • Another request is that exchanges indispensable get an Information Security Management System (ISMS) certificate. Many crypto exchanges successful South Korea besides find it hard to conscionable the requirements for this certification. The work noted that Bitsonic exchange, for example, announced connected July 30 that it volition temporarily halt providing services to renew its work systems successful bid to conscionable the ISMS requirements.

What bash you deliberation astir the FSC shutting down 11 exchanges and galore much volition person to unopen down owed to their inability to comply with the upcoming regulation? Let america cognize successful the comments conception below.

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