June 27, 2022

S.Korea Crypto Crackdown: 60 Crypto Exchanges to Shut Down Due to This Reason

2 min read

S.KoreaS.Korea

60 crypto exchanges in South Korea have been asked by the regulative body to either partly or completely halt their services and notify the consumers about it by Friday. The shut down of these exchanges comes as they stopped working to comply with the current set of regulations that enter result from next week.

In order for crypto exchanges to remain functional, they should sign up with the anti-money laundering firm Financial Intelligence Unit by September 24 and partner with banks to offer real-name bank accounts. Just a handful amongst hundreds of crypto exchanges in S.Korea has actually managed to satisfy the requirements according to new AML guidelines and the staying numerous other little and medium crypto exchanges are set to close their services.

The chief regulative body of the nation Financial Services Commission (FSC) in a notice has actually said,

“Should some or all services require to be closed, (exchanges) should notify consumers of the expected closing date and procedures to withdraw money by a minimum of 7 days prior to the closure,”

S.Korea Intesnifes Crypto Crackdown on Non-Compliant Exchanges

S.Korea launched a brand-new AML guideline passed in January this year that requires crypto exchanges operating in the country to sign up with the anti-money laundering authorities and obtain a license. In order to get a license, these exchanges should get rid of shadow banking and fulfill rigorous KYC policies to guarantee to no funds are unaccounted for.

The first due date was embeded in March that the majority of the exchanges failed to fulfill in hopes that the regulators would re-think the rigorous policies. However, FSC just extended the due date to September without giving any concession with its compliance policies. As an outcome, the majority of the small and mid-sized crypto exchanges would have to shut down as they can not afford to fulfill all the compliance requirements.

The post S.Korea Crypto Crackdown: 60 Crypto Exchanges to Shut Down Due to This Reason appeared initially on Coingape.