South Korean Regulator Orders 12 Crypto Exchanges to Improve User Agreements


South Korean regulator Fair Trade Commission (FTC) orders 12 crypto exchanges to improve user agreements, as authorities have blamed the exchanges for failing to have the appropriate protection for users in place in their so-called adhesion contracts. 

5 April, AtoZForex – The South Korean financial markets regulator, the Fair Trade Commission (FTC) has ordered 12 of the Korean cryptocurrency exchanges to review their user agreements.

South Korean Regulator Orders 12 Crypto Exchanges to Improve User Agreements

In the statement that has been published yesterday, the FTC has laid out a mandate, which called out some of the popular exchanges, such as Bithumb, Korbit and Coinone, among others. As per the reports from the South Korean news agency, authorities have blamed the exchanges for failing to have the appropriate protection for users in place in their so-called adhesion contracts. These contracts are also known as boilerplate contracts.

The online report stated that the FTC has referred to the provisions in the agreement which it has stated place undue financial burdens on its users when the latter party ends their memberships.

The move from the FTC comes as the latest effort from the Korean government to manage the cryptocurrency exchange ecosystem in the country. Only last month, the country’s regulators have been investigating the anti-money laundering controls of banks that deal with exchanges. This initiative appeared following the public reports of an investigation into the potential tax evasion.

South Korea Crypto Environment Largely Positive

Aside from the regulatory actions, some of the cryptocurrency exchanges have set out a largely positive tone in regards to the sector’s future. Earlier this week, members of the exchange ecosystem have promised to put more efforts into self-regulation. They aim to create a so-called “healthy market.”

Despite of the strict regulations for exchanges in the country, South Korea still continues to be one of the major cryptocurrency and exchange markets. In fact, the city of Seoul has announced that it intends to work on its very own cryptocurrency S-coin.

Park Won-soon, the mayor of Seoul, has announced the plan last week, as he also has revealed that the city looks into creating a fund to support the improvements of Blockchain technology and startups in this sector. He has stated:

“As Seoul is the world’s leading city in the field of information and communications, including the Fourth Industrial Revolution, I think we should study new technologies such as blockchains.”

Just like in case with Estonia, which plans to apply Blockchain technology to all the government administrative processes, Mr. Park believes that the “blockchain can be applied to all bureaucratic administrations in Seoul, such as the public transport system system operated by Seoul City and the provision of youth allowance.”

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