2 years ago
South Korea’s Financial Services Commission (FSC) reported 16 overseas crypto exchanges to investigative agencies for violating the Specific Financial Information Act, news1 reported connected August 18.
According to the report, the instrumentality prevents unregistered crypto exchanges from operating without a license, but the 16 firms person been providing crypto services for Koreans and hosting events targeting Koreans.
The affected exchanges see MEXC, KuCoin, CoinW, CoinEX, ZB.com, Bitglobal, Bitrue, Poloniex, BTCEX, Phemex, XT.com, Pionex, BTCC, DigiFinex, AAX, and ZoomEX.
The study revealed that the infraction was discovered by the Financial Information Analysis Institute limb of the FSC.
The regulators had informed the firms astir their work to study their operations, but they failed to comply.
FSC wants KuCoin, Poloniex, and others blocked
The FSC wants to artifact these exchanges’ continued cognition wrong its jurisdiction.
It has asked the Broadcast and Communications Commission and the Korea Communications Commission to artifact home entree to their websites.
Meanwhile, the regulator wants to barroom recognition paper companies from rendering their services to these firms.
The exchanges bash not person an ISMS certificate
Officials described the exchanges arsenic ill-equipped due to the fact that they bash not person the Information Security Management System (ISMS) certificate, which means their users hazard having their idiosyncratic accusation leaked.
Apart from that, the officials added that malicious actors could besides usage the exchanges to launder money.
Under the Act, an idiosyncratic operating an unregistered and amerciable speech could beryllium imprisoned for up to 5 years oregon fined 50 cardinal won ($37,900).
The relation volition besides beryllium incapable to registry arsenic a home virtual plus relation for 5 years.
The instrumentality applies to some overseas and section exchanges operating wrong the country.
South Korea’s crypto regulations
South Korea has 1 of the astir comprehensive ineligible frameworks for the crypto industry.
In 2021, the authorities mandated crypto firms to get the ISMS certification, starring to the exit of respective crypto exchanges from the country.
However, 35 virtual assets providers could registry locally –five of those exchanges, UpBit, Coinone, Gopax, Korbit, and Bithumb, are liable for implicit 99% of the crypto transactions successful the country.
Meanwhile, the caller illness of the Terra ecosystem has led to increased emphasis connected crypto regularisation successful the country.
The station South Korea to artifact 16 unregistered overseas crypto exchanges appeared archetypal connected CryptoSlate.
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