Unregistered Crypto Exchanges Must Register With South Korea’s FSC Or Face Jail Time
The government of South Korea wants all unregistered crypto exchanges in the country to shut down. If they don’t, their owners may go to jail.
Recently, lawmakers of the country decided that all exchanges should register with the Financial Services Commission (FSC). Now it has created a bill that determined that any administrator who has not done so and continues to do business, it can serve up to five years in jail and will have to pay a fine of around $42,000 USD.
The new amendment was created in order to help the country to comply with the guidelines that were submitted by the Financial Action Task Force (FATF) recently. All countries within the European Union are expected to follow the guidelines.
Lawmakers from the opposition, however, were not so happy with the new bill. Some of them affirmed that this could end up contracting, even more, the domestic crypto industry in South Korea.
If the amendment is really passed, companies that use virtual accounts with names could be hurt, too. Only Bithumb, Coinone, Upbit and Corbit have bank accounts with names, so other companies may be harmed by the new law and the market would become even more centered on these big exchanges.
The CEO of Gopax, Lee Jun-haeng, a cryptocurrency exchange without any real-name virtual accounts, affirmed that the idea of having named accounts is nice, but only if the market is fair, which was insinuated that it was not.