Several sources have confirmed that numerous mid-sized crypto exchanges working in South Korea are not going to get consent from the FSC. The leading financial regulator of South Korea, the Financial Services Commission as per the sources are aiming to close approximately a dozen of local cryptocurrency exchanges on the grounds of fraud allegations and lowered value of Bitcoin-Kimchi.
FSC’s Decision Towards 11 Crypto Exchanges
The FSC has given an ultimatum to restrict the operations of 11 crypto exchanges operational in South Korea. As per a local news agency, the exchanges are liable for alleged fraudulent and illegal activities as well as amounts. The report was published on Sunday and included an anonymous source from the industry, although, information about the exchanges were not shared. The sources highlighted that listed crypto exchanges won’t get any approval concerning the operations from the FSC. As per the report, the regulatory authority aims to facilitate stringent regulations concerning small crypto exchanges prevalent in South Korea.
The news regarding suspected shutdowns was released during several suspensions of small crypto exchanges in South Korea. A locally operational crypto exchange called Bitsonic made an announcement on Friday on the official account of Bitsonic on Telegram about temporary dismissal in the operations following a statement or reason related to external or internal issues. Apart from this, another local crypto trading firm called CPDAX affirmed the overall shut down of their operations by 1st September. Another exchange called Darlbit reportedly ceased its services post suspension of deposit and withdrawal options present on the platform.
