• Sun. Feb 25th, 2024

According to multiple reliable sources, numerous crypto exchanges present in South Korea may not get the FSC’s approval. Financial Services Commission, which is undoubtedly the best financial regulator in South Korea, plans to close down more than tell local crypto exchanges. According to multiple reports, the Financial Services Commission is taking this decision because of several fraud-related allegations.

What’s more, the regulator will ultimately suspend the operations of around eleven to twelve cryptocurrency exchanges based in Korea. Several fraudulent accounts, illegal activities, and numerous other issues are reported to be the reason behind this shutting down. According to the ever-so-reliable Korea Herald, multiple sources in the industry claim that these exchanges remain unnamed and there are no reports of these names being disclosed as of yet.

These sources also made an argument that these crypto exchanges may not be able to receive the FSC’s approval for quite some time. This will undoubtedly bring their operations to a screeching halt. Some pieces of news also suggest that authorities plan to enforce incredibly strict regulations, especially as far as small South Korean cryptocurrency exchanges are concerned.

The reports and news regarding these probable shutdowns by the Financial Commissions Service come due to smaller cryptocurrency exchanges deciding to suspend their operations. A renowned local cryptocurrency exchange based in South Korea made an announcement on Friday. In this announcement, it claimed that it intends to halt its operations temporarily. The reason given for these shutdowns were apparently external and internal issues.

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CPDAX, which is another well-known cryptocurrency trading platform based in South Korea claimed that it may completely shut its operations down, starting 1st of September. Before this, the Darlbit exchange apparently terminated its services. The exchange suspended its withdrawal and depositing services the previous month.

It is worth keeping in mind that the Financial Services Commission did not offer an immediate answer to the request sent by Cointelegraph for comments. The crypto exchanges present in South Korea have been strictly regulated. What’s more, they are subject to even more scrutiny as authorities require service providers of digital assets to register their respective businesses by September.

They have also been asked to create reporting and trading accounts with real names. All of this is especially true for medium and small-sized businesses. This is because they are having a hard time securing their licenses from the right authorities. On the other hand, however, the bigger exchanges like Korbit, Coinone, and Upbit don’t have any problems in securing their licenses.

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