As per the latest reports, a particular regulatory authority in South Korea is to go after several cryptocurrency exchanges. The reports suggest that the particular regulatory authority is in the process of shutting down these cryptocurrencies.
The media sources have confirmed that the particular regulatory authority is the Financial Services Commission (FSC). The reports confirm that the FSC is in the process of shutting down a total of eleven cryptocurrency exchanges currently operating in South Korea.
As far as the reason for shutting down the exchanges is concerned, the South Korean regulator is doing it as a result of the allegations posed against the exchanges.
The exchanges have been accused of being involved in fraudulent activities. Therefore, the regulatory authority decided to take down the exchanges.
The local media sources reveal that the eleven figure is the minimum number of exchanges that the FSC is aiming to shut down. The regulator has alleged that all of these exchanges are involved in activities that involve fraudulent collective accounts and illegal activities.
One of the major news reporting firms that have covered the story on the matter is “The Korea Herald”. The news reporting firm has provided information against the exchange and its illegal activities on Sunday, August 1, 2021.
In the report, the news firm claimed there were anonymous sources that shared the information in regards to the involvement of the eleven exchanges. So far, the names of the exchanges have not been shared by the sources. However, it has been confirmed that a minimum of eleven exchanges is currently under the microscope of the FSC.
It has been claimed that so far, the names of the exchanges are only with the Financial Services Commission. It will not be sharing the names of the exchanges until the preliminary investigation has been conducted by the FSC.
As a result of the recent events, a claim has been made by anonymous sources. The claims suggest that the Financial Services Commission will not be giving approval to either of the alleged exchanges to operate in South Korea.
In the light of the recent events and progress around such exchanges, the Financial Services Commission has also made another decision. According to the decision, stricter regulations will be implemented by the regulator over the rest of the exchanges.
The regulator would ensure that the regulations imposed on the old, new, small, or major exchanges would be the same, to begin with.
The reason behind the regulatory authority coming into action is the announcements that several cryptocurrency exchanges made. The sources reveal that majority of the exchanges making the announcements regarding temporary closure/suspension of their services were small-time.
Therefore, the regulatory authority became active, started investigating them, and established such unlawful activities.