11 Cryptocurrency Exchanges Will Be Closed in South Korea

In South Korea, 11 cryptocurrency exchanges will have to shut down due to non-compliance with the country’s Financial Services Commission (FSC) conditions.

According to The Korea Herald, citing knowledgeable sources, the regulator will stop the operations of 11 companies and report their offences to the prosecutor’s office and the police.

The truth is that these exchanges were unable to accomplish the FSC requirements for identifying customers with registered bank accounts and used “fraudulent collective accounts”.

Because of this, companies will have to close their businesses, as FSC will no longer give permission to continue operating.

On January 30, 2018, the South Korean authorities tightened the rules in relation to the cryptocurrency industry in the country. It is illegal to trade cryptocurrencies anonymously in the country, and each trader must have a personal registered bank account.

After several amendments to the law, all local exchanges are required to register with FSC by September 24, 2021. Also, the exchanges had to monitor the fulfilment of the conditions regarding bank accounts. But the regulator’s requirement was fulfilled only by large exchanges.

Medium and small market participants continued to use corporate bank accounts to receive user funds.

Although the country is tightening the rules for regulating cryptocurrencies, more and more companies are also adapting to the field of digital assets. South Korean Woori Bank offered its clients the option of storing cryptocurrencies on their personal accounts.

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