- Authorities in Korea toughen crypto regulation.
- FSC set to crackdown on 11 small exchange firms.
- Exchanges revolt against tough crypto regulation.
South Korean authorities have continued to crack down on crypto firms in recent times in an indirect manner with tough crypto regulations. The crypto crackdown in the country has taken another twist as 11 exchange firms in the country are going to be folding up.
The 11 exchange firms are closing down after the country’s watchdog stated that they operate their businesses illegally amidst their ongoing ‘crypto crackdown operations.’ The 11 exchange firms remain unknown, however.
FSC and its continued crypto crackdown
Local reports in Korea have revealed that the crypto exchanges to be closed are small and mid-sized crypto exchange firms. According to the Financial Services Commission (FSC), the exchanges are operating without proper clearance.
The FSC is to reel out more details on its crypto crackdown and how these exchange firms have operated illegally.
Crypto experts have predicted the crypto crackdown early in the year. They predicted that small crypto firms risk facing clampdown by regulators except the local giants Bithumb, UPbit among others.
Despite the FSC yet to name the firms that are to close down, numerous other mid-sized firms are closing up already. Last week CPDAX announced it would halt its platform as of September 1st.
Bitsonic, another firm, announced on Telegram that it would temporarily stop its operations to renew its service systems.
Exchanges revolt against tough crypto regulation
Authorities have put crypto firms on their heels in Korea as they have made tough criteria for approval and a deadline of September 24th for all exchange firms to get in line.
Back in June, exchange firms were planning to sue the government for failing to come up with fair regulations.
The lawsuit threat by crypto firms resulted from the need for exchange firms to have a real-name account at a local bank by September to remain in business. It appears that regulation would push too many smaller trading platforms out of business, so they opt to file a lawsuit.
Regulators have also been threatening exchanges with a jail term if they don’t meet regulation. Other penalties are heavy fines, and ultimately total clamp down on such firms.