South Korea’s Financial Supervisory Commission (FSC) has shut down 11 local cryptocurrency exchanges, citing concerns about the lack of transparency and potential for fraud. The FSC said it would continue to monitor the market and would take further action if necessary.
South Korea’s Financial Services Commission (FSC) has shut down 11 local exchanges. The FSC said it will take legal action against the exchanges that are not complying with the country’s crypto regulations. Read more in detail here: map of south korea.
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News from the Exchange
South Korea is one of the main nations where the bitcoin sector has a large population. Many nations are working hard to regulate and reform the cryptocurrency industry. Last month, South Korea established restrictions on 578 cryptocurrencies. In general, several nation authorities are looking into cryptocurrency exchanges to see whether there is any fraudulent or illegal behavior going on.
Authorities recently made a step ahead in their regulatory probe into unregistered cryptocurrency exchanges. The FCA has now issued a closure order for 11 South Korean local exchanges.
Exchanges are examined.
The Financial Services Commission of South Korea (FSC) examined and closed 11 local exchanges accused of unlawful activity. Furthermore, the reports do not disclose the identities of the exchanges accused of fraudulent conduct. The FSC, on the other hand, will not allow these closed exchanges to function in the future.
Significantly, the country’s major exchanges have been unaffected by the ban. Upbit and Bithumb have no bearing on the inquiry since they enable users to create profiles using their actual names. South Korea has mandated such registration since 2018 for anti-fraud and anti-money laundering reasons.
Bithumb stated on July 2 that it has implemented a new policy prohibiting its workers from investing or trading with Bithumb accounts. Financial authorities were in a position to impose restrictions on crypto exchanges, therefore this new policy was for internal regulations.
The Crypto Industry Faces a slew of Obstacles
South Korea has a stringent crypto regulatory framework, which has caused a host of problems for crypto investors. Furthermore, the FSC issued a statement saying that bitcoin exchange rules had been strengthened. The government plans to change tax rules to enable financial authorities to confiscate crypto assets held by suspected tax evaders. South Korea seized $47 million from tax evaders in June, freezing their accounts. This rule does not apply just to local exchanges; all international exchanges are required to register with the KFIU. Exchange platforms have until September 24 to register with the Korea Financial Intelligence Unit (KFIU), after which legal action would be taken against them.
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