South Korea’s Financial Regulator Denies Rumors Says It Is Not Shutting Down 11 Cryptocurrency Exchanges

As per reports, numerous mid-sized digital currency trading platforms in S. Korea would be denied permission by the Financial Service Commission.

The FSC, S. Korea’s primary financial watchdog, is allegedly threatening to close down a few domestic digital currency trading platforms due to criminal claims.

As per regional news source The Korean Herald, the Financial  Service Commission will halt operation including at least Eleven mid-sized digital currencies trading platforms in S. Korea owing to possible unlawful activity and fake group accounts. According to unnamed industry insiders, the identities of the institutions have not yet been revealed.

As per the reports, the stated digital currency institutions would be not allowed to obtain FSC clearance to operate. The article also mentions that the government intends to impose tougher rules on micro cryptocurrency trading platforms in S. Korea.

The report of the purported closings comes on the back of many smaller S. Korean digital currency exchanges ceasing activities. Bitsonic, a regional cryptocurrency trading platform, said on Friday in a channel on Telegram that it will suspend operations for the time being because of some external and internal difficulties the crypto exchange is facing.

A similar regional digital currency exchange site, CPDAX, has also announced that it will also cease operations altogether on the 1st of September. Darlbit platform had allegedly ceased operations after halting withdrawal and deposit facilities last month.

However, the Financial Service Commission didn’t give a reply to Cointelegraph when it was seeking the authority’s stance on the matter.

South Korean digital currency trading platforms have lately faced an increased legal oversight, with regulators requiring regional cryptocurrency facilitators to sign up their companies till September, as well as establish legitimate reporting and exchange accounts. Relatively medium and small-sized digital currency trading platforms, particularly, have allegedly struggled to obtain licences from relevant regulators, in contrast to significant digital currency trading platforms such as the likes of  Bithumb,  Korbit  Upbit, and Coinone.

Regardless, the much bigger digital currency trading platforms in S. Korea have recently encountered difficulties because of authorities. As per Yonhap News, the capital of South Korea’s Police department on Monday restarted an examination with an accused scam case concerning the previous head of Bithumb, S. Korea’s biggest digital currency trading platform.

Leave a Reply

Your email address will not be published. Required fields are marked *