South Korea plans to block citizens from accessing foreign cryptocurrency exchanges that have not gone through the registration process. About it writes Bloomberg, citing a statement from the Financial Services Commission (FSC).
The regulator has already submitted a request to local supervisory authorities to block sixteen cryptocurrency exchanges: KuCoin, MEXC, Phemex, XT.com, Bitrue, ZB.com, Bitglobal, CoinW, CoinEX, AAX, ZoomEX, Poloniex, BTCEX, BTCC, DigiFinex and Pionex.
Moreover, the Korean authorities intend to report violations of cryptocurrency exchanges to the countries where these platforms are based. It is expected that in this way they will be able to achieve isolation of illegal crypto exchanges.
In addition, people who engage in cryptocurrency business without registering face up to five years in prison or a fine of up to $37,900. As additional sanctions, they may also be banned from registering companies for some time.
Back in 2021, South Korea obliged cryptocurrency exchanges to be certified for compliance with information security requirements. Since then, more than half of the local crypto exchanges have ceased operations.
According to the government, there are currently thirty-five cryptocurrency exchanges registered in South Korea. These include Upbit, Bithumb, Coinone, Korbit and Gopax. According to Bloomberg, they account for more than 99% of the trading volume of the domestic market. In general, following the results of regulatory tightening, the volume of trading on the local market fell by 140%.
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