South Korea Shuts Down 11 Crypto Exchanges Due to Stricter Regulation

South Korea’s top financial regulator, the FSC, will shut down the operations of 11 crypto exchanges and report their violations to the prosecutor’s office and the police.

August 2, 2021, | AtoZ Markets – Medium-sized cryptocurrency exchanges in South Korea are closing, according to the Korea Herald, citing sources. According to the publication, they were convicted of illegal activities, while the country moves to strengthen the regulation of the cryptocurrency industry.

FSC suspends operations of 11 crypto exchanges in South Korea

11 exchanges used fraudulent practices to create collective accounts and are likely to have to cease their activities. South Korea’s top financial regulator, the Financial Services Commission (FSC) intends to ban the servicing of their transactions and contact the prosecutor’s office and the police. The names of the exchanges have not been specified, but they will no longer be able to obtain permission from the authorities to continue their activities.

Observers predicted similar actions this year, as most exchanges in South Korea, with the exception of the largest Upbit, Bithumb, Coinone, and Korbit, did not open accounts to identify customers by real name, which is now a prerequisite for working in the cryptocurrency space.

Several mid-sized exchanges have themselves announced plans to close the business. So, Darlbit stopped serving clients on July 15, having previously warned them about it. CPDAX on Friday announced that it will close on September 1.

This is not a temporary, but a permanent measure to close the business. Those who have cryptocurrency in their accounts must withdraw it by 15:00 on August 31,” she wrote.

Bitsonic on Friday announced through its official Telegram group that it would temporarily suspend service to update systems.

When we are done with this, we expect to receive an information security certification,” Bitsonic said.

The cyber security certificate is another mandatory requirement for crypto exchanges in South Korea and demonstrates that they follow government-recommended procedures when managing customer data.

Trading platforms must obtain approval from the Financial Services Commission by September 24th. Bitsonic admits that an information security certificate can be issued to it in the period from August 6 to November 30, so for this period, it will have to stop activities.

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