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Home / Blockchain / New Strict Crypto Regulations in South Korea

New Strict Crypto Regulations in South Korea

Published Wed, Sep 15 2021 04:44 am
by The Silicon Trend

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South Korean FSC to Wipe $2.6Bn From "Kimchi" Market

For the worse, South Korean crypto traders are expecting more than $2.6Bn as two-thirds of the country's crypto exchanges will be eradicated in legal reforms in one of the world's massive e-currency markets. The Financial Services Commission (FSC) of South Korea publicized regulatory prevention upon the company's loss to meet new-flanged compliance needs by September 24. 

 

The commission underlined that the impotence to meet the deadline might result in the shutdown of 40 exchanges in South Korea. In addition, the head of Crypto Research Center - Kim Hyoung-joong, said the massive shutdown of minor exchanges might eradicate 42 kimchi coins, an alternative e-currencies traded in Korean won. 

 

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Industry data pinpoints that these currencies other than bitcoin yield over 90% of Korean crypto transactions. The president of Finance Consumer Federation, Korea - Cho Yeon-haeng, said, "Huge investor losses are expected with trading suspended and assets frozen at many small exchanges as customer protection will not likely be the priority of those exchanges facing an imminent closure."

 

Crypto Regulation

According to new regulations, domestic or foreign exchanges will be needed to issue real-name accounts in the bank to prevent money laundering. Banks will monitor transparency, business risks & criminal activity of these exchanges. All the foreign exchanges providing services to Korean investors must register with Korean Financial Intelligence Unit (KFIU).

 

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