South Korea is to take direct action against unregistered crypto exchanges that trade cryptocurrencies without submitting to government exchanges.
The South Korean government plans to ban local cryptocurrency exchanges.
South Korea is reportedly preparing to take action against unregistered cryptocurrency exchanges, according to local media reports. The South Korean government is planning to inspect over 30 local crypto exchanges over the course of the next week in a move to crackdown on unregistered exchanges. The Korean government reportedly plans to inspect cryptocurrency exchanges, as the country steps up its efforts to regulate the virtual currency market.
The South Korean government stated today that crypto exchanges who do not register voluntarily with the country’s authorities by September 24 would face penalties.
This new set of rules is expected to impact both South Korean exchanges and international exchanges operating in Korean markets. According to the press release, this includes any exchange that supports the Korean language, markets to Koreans, or accepts payments in Korean won.
Exchanges that continue to operate without registering face up to five years in jail or a fine of up to 50 million Won (approximately $43,500 USD) under the Specific Financial Information Act. According to sources, there are also measures in the works to ban websites belonging to unregistered exchanges in the future.
The Bank of Korea has chosen Kakao’s blockchain arm to conduct digital won testing.
To prevent any fines, Korean users should check on September 25 to verify whether the exchange they are using is registered. Sales conducted via such exchanges would be prohibited inside the nation as of that date.
This is the latest in a long line of cryptocurrency-related laws across the world. The European Union unveiled measures earlier this week to restrict the sending and receiving of cryptocurrencies in the hopes of preventing money laundering. The SEC Chairman said that bitcoin is subject to the same laws and regulations that apply to security-based swaps in the United States, and that additional regulation may be forthcoming. This week also saw a meeting between the President’s Working Group on Financial Markets and other US agencies to discuss the usage and dangers of stablecoins. In the next months, regulatory recommendations are anticipated to be presented.
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