The South Korean Financial Services Commission (FSC) will shut down a total of 11 local crypto exchanges. Specifically, they have all used fraudulent accounts.
According to sources, the 11 exchanges that have used fraudulent accounts are likely to go out of business. Since the FSC inspection plans to stop your transaction and report the illegal activities to the prosecution and the police.
In fact, the statements further radicalize the position of the South Korean government. Since in the midst of the rejection of these measures, cryptocurrency trading has increased remarkably in recent weeks.
Crypto exchanges shut down in South Korea
Mid-sized local crypto exchanges in South Korea are shutting down as the country’s financial regulator detected some of their illegal activities recently. And stricter regulations will be put in place to allow its business operations.
Specifically, according to information from “The Korea Herald”, the FSC is closing a large number of local crypto exchanges.
As a fun fact, the full list of exchanges, which are scheduled to close, is unclear. However, according to sources, it will be impossible for them to get FSC approval to operate.
By the way, Darlbit and Bitsonic are among the South Korean cryptocurrency trading platforms that recently made announcements about the cessation of trading operations.
In fact, Darlbit closed on July 15. After notifying clients early last month that it would stop deposit and withdrawal services. For its part, Bitsonic announced on Friday through its official messaging channel Telegram that it will temporarily stop providing services. In an attempt to revamp the service systems.
«Once we are done with the renovation, we hope to achieve the Information Security Management System».
Likewise, CPDAX also said on Friday that it will shut down services as of September 1. «It is not a temporary measure, but a permanent one to close deals. Those who have cryptocurrencies in the account must withdraw them before 3:00 pm on August 31 “.
The investigation did not affect Upbit or Bithumb
However, Upbit and Bithumb have escaped the repression. As they are among the few platforms that offer real name bank accounts for their clients. Which is a prerequisite for business operation.
To better understand, real name registration is mandatory in South Korea since 2018. In an effort to eradicate money laundering and other fraudulent activities.
By the way, the regulatory crackdown extends beyond local cryptocurrency businesses. Foreign crypto exchanges must also register with the Korea Financial Intelligence Unit (KFIU) before September 24. Otherwise, they will have to close or possibly face criminal charges.
By way of closing, Congresswoman Cho Myeong-hee is moving to extend the reporting period for local open exchanges until December 24. However, financial authorities recently said they support the original plan to finalize the process by September 24, as it has given a 6-month grace period since March.
I say goodbye with this phrase from Woody Allen: «I don’t know the key to success, but I know the key to failure is trying to please everyone».