Dozens Of Crypto Trades In South Korea Will Be Closed, How's The Market Crash?

Crypto trading in South Korea closed (Bitcoinist)

JAKARTA – Recently, the South Korean Financial Services Commission (FSC) was rumored to be closing a number of crypto trades in the country because it was accused of fraud and a number of other illegal activities.

Reporting from Cointelegraph, the FSC suspended around 11 crypto trades in South Korea due to alleged fraud and illegal activities. This information was reported in local media The Korea Herald on Sunday, July 1, 2021.

However, the media did not reveal the names of the crypto trading platforms that the government will shut down. The crypto exchange is reportedly not licensed to operate from the FSC. Therefore, South Korea's financial regulator seeks to tighten crypto exchanges in the country.

The news of closing crypto trading came after a number of small crypto exchanges were suspended by the FSC. One of them is the Bitsonic crypto exchange which announced the temporary closure of its services last week citing “internal and external problems”. The announcement was made by Bitsonic through its official Telegram channel.

In addition, the CPDAX crypto exchange has also announced the closure of its services starting September 1. Another cryptocurrency trading, Darlbit has reportedly stopped operations after they suspended deposit and withdraw services last month.

The South Korean government requires all crypto exchanges in the country to register their businesses with financial regulators no later than September. They are also required to create accounts and trading reports using real names.

So far, small and medium-sized crypto exchanges in South Korea are struggling to get licenses from local authorities. Although the licensing is different from big crypto exchanges like Korbit, Bithumb, Coinone and Upbit.

Not only small and medium crypto exchanges, large crypto trades are also facing the same problem. The problem is currently afflicting the largest crypto exchange in South Korea, Bithumb. On Monday 2 August, the authorities were investigating the former chairman of Bithumb on suspicion of fraud.