Korean Crypto Exchanges Delisting High-Risk Coins Due to Regulations

Korean Crypto Exchanges Delisting High-Risk Coins Due to Regulations

Crypto News Exchanges News
June 14, 2021 by Elias Powell
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With every passing day, the cryptocurrency industry continues to transform in South Korea. The South Korean Government that was once considered the lightest and most flexible is becoming the exact opposite of it. The cryptocurrency industry is constantly getting buried under more and more pressure from the regulations imposed by South Korean regulators. One of
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With every passing day, the cryptocurrency industry continues to transform in South Korea. The South Korean Government that was once considered the lightest and most flexible is becoming the exact opposite of it.

The cryptocurrency industry is constantly getting buried under more and more pressure from the regulations imposed by South Korean regulators. One of the recent additions made by the South Korean regulators in the crypto-regulatory guidelines has made things very difficult for crypto exchanges operating in the country.

The situation is constantly becoming more and more difficult for the cryptocurrency exchanges in the country. Now, the imposition of the new regulatory instruction is going to make things a lot more difficult for the entire crypto-exchanges community.

The regulatory authority has added a new instruction for the cryptocurrency exchanges operating in South Korea. The instruction demands exchanges to make a list of cryptocurrencies that are of high risk for the investors.

According to the instructions, the cryptocurrency exchanges are required to judge and point out the cryptocurrencies that deem a high risk for investors. Then these cryptocurrencies are to be delisted by the cryptocurrency exchanges operating in the country.

The reports suggest that the cryptocurrency exchanges including one of the largest exchanges in South Korea, Upbit have only one week to complete the list.

Once done, they need to issue warnings to their investors about the high risks involved in dealing with particular cryptocurrencies. Furthermore, the exchanges would be required to delist the particular cryptocurrencies from their platforms.

This would act as a precautionary measure so the investors do not end up getting their hands on particular cryptocurrencies.

The local media sources have confirmed that lately, the financial regulators have started paying much attention to cryptocurrencies. These regulators are turning every stone within the cryptocurrency industry to find any flaws or ambiguities to resolve them at the earliest.

The cryptocurrency community and firms have all pointed out and shared their concerns over the financial regulators’ intervention. They are scrutinizing the cryptocurrency providers and other crypto-related firms with something different in mind.

Many observers are speculating that the South Korean financial regulators are doing this deliberately. They are trying to make the cryptocurrency industry in South Korea, so much difficult to operate that the firms may end up losing their confidence in the country. Eventually, these firms would back out and look for opening their services in some other countries.

The reports suggest that so far, 33 different platforms for cryptocurrency trading have been contacted by the Financial Intelligence Unit (FIU) of South Korea. The regulatory authority is intimating all cryptocurrency firms that before the grace period for implementation of regulations ends, it would carry out a field consultation.

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