Cryptocurrency exchanges in South Korea have begun to stop trading in tokens deemed too risky for investors. According to the local publication Arirang, of the 20 exchanges that are certified for the security system, 11 have either completely stopped trading in such tokens or issued a warning.
So, the Upbit exchange delisted Paycoin, Maro, Observer, Solve.Care and Quiztok tokens, and Huobi Korea stopped trading its own HT token. Coinbit has stopped trading eight tokens and added another 28 to its investor warning list.
The security certificate is issued by the South Korean Internet and Security Agency (KISA) and is required to provide the country’s residents with services in the field of virtual currencies. On Sunday, the Korea Times reported that banks will have to stop servicing crypto exchanges that have committed violations in checking customer identities or filing reports of suspicious activity. Banks, in turn, are in no hurry to enter into agreements with exchanges, fearing that they may be involved in money laundering activities.
In addition, employees of local exchanges are going to be fined 100 million won ($ 90,000) for trading on their own platforms. In May, the Financial Services Commission was officially appointed as the agency responsible for overseeing and regulating the cryptocurrency market in South Korea.
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