- Regulatory certificates were sent by the ISMS (Information Security Management System) of South Korea to the crypto industries
- All valid agencies of cryptocurrencies have to register themselves by September 24, 2021, latest
- Well-known companies like, Solve.Care, Maro, Quiztok, etc., have been delisted from the country
South Korea follows more strict rules in regulating cryptocurrencies in the country, the exchange and trading of many other digital currencies are also ceasing. The platforms have been considered too risky for the transfer of money, with the increasing number of fraud cases. Several local news outlets have mentioned in a report this Wednesday at least 20 of the crypto outlets in South Korea have received regulatory notices which have, in turn, led to a stop in their working. These regulatory certificates were sent by the ISMS (Information Security Management System) of South Korea. Virtual Asset Service Providers must have a certificate issued by the Korea Internet and Security Agency (KISA) in order to operate in the country. It also adheres to South Korea’s revised Financial Transactions Reports Act, which mandates all cryptocurrency exchanges to register with the country’s regulators by September 24, 2021. Failing it would lead to severe consequences as far as the crypto industries are concerned.
Well-known crypto industry get delisted
Upbit, which has delisted Paycoin, Maro, Observer, Solve.Care, and Quiztok are among the crypto exchanges mentioned in the study. According to the source, Huobi Korea has ceased trading of Huobi tokens, while Coinbit has ceased trading of eight cryptos and placed 28 currencies on a warning list. This is just another example of South Korea’s officials increasing their pressure on the domestic bitcoin business.
According to the Korea Times, banks would have to start denying services to consumers who refuse to cooperate with identity checks or who fail to report suspicious activities. Furthermore, the country’s financial regulators have started the process of fining exchange personnel who trade on their own platforms 100 million won (US$89,519).
South Korea does not intend to leave the good books of the crypto market
As country’s take to banning or regulating the use of crypto in and across the world, more and more individuals are opting to invest in it, which is leading to a greater rise in the crypto industry, even after the increased fraudulence that exists in the platform that poses risks to all the investors.
South Korea has taken its stance against the industry, it has decided to moderate and a future ban can also be expected. Several warning certificates have been issued to all the known crypto agencies in the country, and they are asked to regulate their facilities as per the rules posed by the country.
South Korea has made the registration of all legal crypto industries mandatory. Crypto agencies that have a low capital value will be banned from trading, i.e., other companies will cease any form of trading with them. The country however does not want to go completely against the industry, so it is regulating them so that the industry complies with the norms of the country and in the same way, it does not create any rivalry.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.