South Korea has quite strict policies when it comes to crypto exchange operations in the country. Lately, the Korean regulators are acting against around 16 crypto exchanges operating illegally in the country. It can lead to 5 years in prison and KRW 50 million ($37,429) in fines. The amount isn’t a lot, but 5 years in prison is a major problem these foreign exchanges have to deal with.
South Korean regulators are taking strict action
The country’s financial intelligence authority is investigating many exchanges that were operating illegally in the country. These are all foreign platforms and do not have an operational license. We have two popular names on the list as well. They are Kucoin and Phemex. Other exchanges are MEXC, XT.com, Bitrue, ZB.com, Bitglobal, Coinw, Coinex, AAX, Zoomex, Poloniex, BTCEX, BTCC, Digifinex, and Pionex.
So, how are the authorities determining that these platforms are targeting South Korean users? They have been found to offer websites in their language, host events that will appeal to Korean users, and provide payment options that are supported in the country. While the first point two can be discussed, however, the payment option clearly signifies that they were targeting South Korean users.
These exchanges were already asked to register in July last year, and now the authorities have no other option but to take strict action. Korean authorities are going to inform authorities where these platforms are based, and they will also make the transfer of coins to and fro these platforms impossible. How? The registered entities will be informed not to transact with these exchanges.
A solid step by the authorities
It is good that the financial watchdog of South Korea is taking strict action against unregistered platforms. Now all of them are not bad platforms or scams; however, not letting unregistered platforms operate enhances customer security. It also ensures that the investors know which platforms they can trust and whom they can’t. All in all, it seems that other countries should also issue strict mandates on how crypto businesses can operate in the country.
What are your thoughts as Korean regulators are acting against crypto exchanges operating without licenses? And do you think other countries should be strict in this regard for customer protection? Let us know in the comments below. And, if you found our content informative, share it with your friends.
Also Read: Issuing dollar-backed stablecoins should be limited to banks, says United Texas Bank CEO.
