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- According to the Financial Times, South Korea’s Financial Services Commission is tightening restrictions for cryptocurrency exchanges, which may cost traders $2.6 billion or more
- According to the Financial Times, around 40 of South Korea’s 60 bitcoin service providers are expected to collapse, citing industry insiders and authorities
- A crisis akin to a bank run is predicted approaching the deadline as investors are unable to cash out of their holdings of ‘alt-coins listed solely on tiny exchanges, Lee Chul-Yi, the CEO of Foblgate, a medium-sized crypto exchange, told FT
According to the Financial Times, South Korea’s Financial Services Commission is tightening restrictions for cryptocurrency exchanges, which may cost traders $2.6 billion or more. Staffers conducted an online conference with virtual asset service providers, or VASPs, on September 6 to discuss regulations linked to a September 24 deadline to register their companies with the government, according to a news statement from the regulatory agency.
The authorities advised VASPs that are planning to operate a virtual asset trading platform but are not planning to offer [Korean currency]-based or other fiat currency-based exchange services by the September 24 registration deadline to terminate their fiat currency-based exchange services immediately. These VASPs should present a document certifying the discontinuation of their fiat currency-based exchange services when completing their registration report.
For VASPs that are unable to meet the requirements and are terminating their operations, the authorities advised them to take measures to minimize damages to service users by issuing advance notices about their business termination at least seven days prior to the expected termination date, informing users about the withdrawal procedures being available until the expected termination date, and informing users about the withdrawal procedures being available until the expected termination date, the release continued. According to the Financial Times, around 40 of South Korea’s 60 bitcoin service providers are expected to collapse, citing industry insiders and authorities. According to the Financial Times, the move might force the shutdown of 42 cryptocurrencies known as kimchi coins sold on local exchanges and priced in Korean won, according to Kim Hyoung-Joong, chairman of Korea University’s Cryptocurrency Research Center.
A crisis akin to a bank run is predicted approaching the deadline as investors are unable to cash out of their holdings of ‘alt-coins listed solely on tiny exchanges, Lee Chul-Yi, the CEO of Foblgate, a medium-sized crypto exchange, told FT. He is not sure if regulators will be able to deal with the consequences.
According to the Financial Times, Cho Yeon-haeng, president of the Korea Finance Consumer Federation, Huge investor losses are expected with trading suspended and assets frozen at many small exchanges as customer protection will not likely be a priority of those exchanges facing imminent closure.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
