South Korea intends to prohibit domestic access to international crypto exchanges which do not have the necessary licence to be operating in the nation and may begin an investigation into the firms.
Based on a statement issued on August 18, the intelligence section of the Financial Services Commission notified 16 overseas crypto enterprises to the country’s investigative authority and requested that other authorities ban entrance to the companies’ local sites.
AAX, DigiFinex, AAX, Poloniex, ZoomEX, CoinW, ZB.com, KuCoin, Phemex, MEXC, Bitrue, XT.com, Bitglobal, CoinEX, BTCEX, BTCC, and Pionex were among the firms included in the announcement.
Officials plan to report infractions to the nations in which the firms are based and to separate them from the other local crypto industries if they do not obtain the necessary licences.
Owners to face 5-year prison sentence in South Korea for operating an unregistered business
As stated in the statement, individuals who run unregistered, unlawful enterprises risk a maximum of five years in jail or penalties of up to 50 million won ($37,900). They may also be barred from forming a firm for an extended period of time.
The year before, South Korea ordered that bitcoin platforms get Information Security Management System approval.
Ever since, over 50% of the country’s crypto exchanges have shut down. According to the authorities, 35 virtual-asset providers are now recognised as lawful platforms in the nation. Upbit, Coinone, Bithumb, Korbit, and Gopax are among the latter, accounting for over 99% of the local market dominance.
Authorities all around the world are increasing their surveillance of the crypto business following a price drop this year that resulted in a series of outbursts. The $40 billion meltdown in South Korean entrepreneur Do Kwon’s Terraform Labs environment, resulting in the TerraUSD stablecoin unravelling, was one example.