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Exchange firms in South Korea to sue government

Crypto ban

TL;DR Breakdown

  • Crypto firms in South Korea to take government to court
  • Exchanges angry over need to partner banks to remain in business

Crypto exchange firms are about to revolt inSouth Korea and sue the government to court over stiff and unfavorable regulations which they have been subjected to comply with.

Local report in the country suggests that exchanges are planning to take legal actions against the government.

The most recent regulation causing the stir of a lawsuit is the one that will require them to have a real-name account at a local bank by September.

It appears that regulation would push too many smaller trading platforms out of business, so they are opting to file a lawsuit. Reports emerged last month on how the South Korean government intends to implement a new rule on cryptocurrency trading venues.

The government plans huge fine on exchanges that don’t comply with AML rules.

South Korea, bad market for exchange firms?

The stringent regulations by the government has been making it challenging for exchange firms to survive. Top exchanges like Binance Korea, OKEX Korea, among others, have left the country as small exchanges are voicing their concerns.

Revolting exchanges are arguing that the government has failed to come up with fair regulations.

Reportedly, banks are unwilling to do business with digital asset trading platforms. It is primarily why small exchange firms believe they are being discriminated against and are being tactically ousted from the country.

How firms are trying to survive the looming ban

Cryptopolitan reported how exchange firms in South Korea have been engaging in mas delisting of altcoins to meet requirements to partner with banks.

They do this to better their chances of getting a bargain with a bank that will offer them real-name accounts for their virtual clients. The new law in the country requires exchange firms to partner with banks that will give them real-name accounts, and if they are unable to meet the requirement, the firms will be forced to shut down.

Muhaimin Olowoporoku

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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