The sources say that the FSC will be unable to obtain the permission of many medium-scale crypto exchanges in South Korea. The Financial Services Commission is South Korea’s main Financial Regulator. It plans to close a dozen local exchanges of cryptocurrencies with suspicions of fraud.
According to The Korea Herald local news site, The FSC will stop activities of at least 11 medium-size crypto-trading companies in South Korea. The magazine cites anonymous sources from the business that the trade names have not yet revealed.
The sources stated that the above cryptocurrency exchanges would not be possible to receive FSC clearance. The article also says that the Authority intends to adopt more stringent regulations in South Korea for smaller crypto exchanges.
The word about the supposed shutdowns emerges in recent times from several smaller South Korean crypto exchanges. On Friday, Bitsonic stated that it would temporarily stop operations by the local crypto exchange on the official Telegram channel, quoting “internal and external difficulties.”
CPDAX, another local crypto trading site, stated that operations would be entirely closed by Sept. 1. In the past, after the suspension of deposits and withdrawals last month, Darlbit exchange also apparently stopped its services.
Strict Regulations Due to Frauds
South Korean crypto exchanges are strictly regulated. Recently, authorities have requested registering their enterprises by local suppliers of digital asset services until September. They have established real-name commercial accounts and reports. In addition to big crypto-scales, such as Upbit, Bithumb, Coinone, and Korbit. Smaller and medium-sized crypto exchanges have allegedly fought to acquire licenses from the necessary agencies.
More significant crypto-monetary trade in South Korea has recently also faced regulatory problems. Yonhap News reports on the investigation into alleged fraud. The former chairman of Bithumb, the largest crypto exchange in South Korea, was again started on Monday by the Seoul Metropolitan Police Agency.