All 200 Cryptocurrency Exchanges Could Be Shut Down Under New Financial Regulation in South Korea, Regulator Warns

The financial administrator of South Korea's top monetary controller, the Financial Services Commission (FSC), Eun Sung-soo, has cautioned that the entirety of the cryptographic money trades in the nation could be closed down. South Korea as of now has around 200 digital currency trades, he said.

All Crypto Currency Exchanges can be Shut Down in South Korea

Executive Eun clarified that digital currency trades are needed to be enrolled with the FSC under the reconsidered Special Funds (Act on Reporting and Using Specified Financial Transaction Information). "We are currently tolerating applications for them to authoritatively enlist their business by the course of events, yet no trade administrators have applied to date," he uncovered. Since no organizations have been enlisted, he cautioned that "They could be closed down abruptly in September."

The changed bill of the Special Funds Act became effective on March 25 and its arrangements will be upheld on Sept. 24 following a six-month elegance period. The revision requires digital currency suppliers, including crypto trades, to meet prerequisites, for example, acquiring Information Security Management System (ISMS) affirmation and issuance of genuine name accounts.

The Financial Services Commission is answerable for enrolling digital currency trades that meet these necessities. In any case, numerous crypto trades are worried that they will be unable to meet the prerequisites, especially in regards to genuine name accounts, which may prompt a mass closure of trades.

Director Eun noticed that digital forms of money are not monetary standards, stressing that the public authority has more than once advised financial backers that their "unexpected value changes are hazardous."

Moreover, the FSC administrator said that benefits from digital currency speculations will be available beginning one year from now. The Ministry of Strategy and Finance declared in February that from 2022 pay created cryptographic money exchanges will be named other pay and will be burdened independently at an expense pace of 20%.

A week ago, the expense division of the Seoul metropolitan government held onto digital forms of money worth about $25 million from many crypto financial backers with delinquent assessments.

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