The majority of South Korea’s cryptocurrency exchanges will likely shut down by next Friday, as operators race to meet stringent new rules from the country’s financial watchdog.
By Sept. 24, all exchanges operating in South Korea must obtain licenses from financial and Internet regulators. As of Monday, only 28 exchanges—out of the 63 operating in-country—had received certification from the Korea Internet and Security Agency (KISA), the first step to obtaining final approval from the Financial Services Commission (FSC). The remaining 35 exchanges are unlikely to be able to comply given the looming deadline, says the FSC.
The crypto industry worldwide has for many years “lobbied to have clear regulatory frameworks,” says Henri Arslanian, partner and crypto leader at consultancy PwC based in Hong Kong. Many crypto leaders welcome straightforward rules because “operating in gray areas makes running the business challenging, from fundraising to opening bank accounts,” Arslanian notes. “It’s not in the best interest of the public, either.”
Still, the rapid-fire closure of over half of South Korea’s crypto exchanges could pave an easy path for crypto monopolies to emerge, which some say could harm ordinary investors.
read more https://fortune.com/2021/09/17/south-korea-crypto-exchange-shut-down-bitcoin-regulation/
By Sept. 24, all exchanges operating in South Korea must obtain licenses from financial and Internet regulators. As of Monday, only 28 exchanges—out of the 63 operating in-country—had received certification from the Korea Internet and Security Agency (KISA), the first step to obtaining final approval from the Financial Services Commission (FSC). The remaining 35 exchanges are unlikely to be able to comply given the looming deadline, says the FSC.
The crypto industry worldwide has for many years “lobbied to have clear regulatory frameworks,” says Henri Arslanian, partner and crypto leader at consultancy PwC based in Hong Kong. Many crypto leaders welcome straightforward rules because “operating in gray areas makes running the business challenging, from fundraising to opening bank accounts,” Arslanian notes. “It’s not in the best interest of the public, either.”
Still, the rapid-fire closure of over half of South Korea’s crypto exchanges could pave an easy path for crypto monopolies to emerge, which some say could harm ordinary investors.
read more https://fortune.com/2021/09/17/south-korea-crypto-exchange-shut-down-bitcoin-regulation/
Christ.
This is just another instance of why centralized exchanges will struggle to survive in the upcoming years.
Expect a ton of regulatory crackdowns pretty much from anywhere in the world. You are not going to see authorities be lenient on cryptos, especially after seeing the current bull run and how much they can collect in tax revenue. Fortunately, this won't affect the adoption of BTC on a grassroots level by any means.
