– The financial watchdog of South Korea has requested for an investigation on 16 crypto exchanges which are currently operating in the country without the operational permit.
– The violations are being looked at and that shall be duly conveyed to the nations that they are registered in.
– The crypto exchanges that are in trouble are one of the many prominent crypto exchanges that operate all across the globe.
– The exchanges are KuCoin, MEXC, Phemex, ZB.com, Bitglobal, CoinW, XT.com, Bitrue, CoinEX, AAX, ZoomEX, BTCEX, BTCC, Poloniex, DigiFinex and Pionex.
– The need for registration for the crypto firms came into effect last year in the month of September after the Financial Transaction Reports Act.
– Crackdown on the industry has intensified on the industry after the downfall of Terraform Labs which has been founded by Korean native Do Kwon.
– It is currently mandated that cryptocurrency platform must own the Information Security Management System certification.
– Crypto exchanges are supposed to follow the guidelines of the Specific Financial Information Act to operate in the South Korean market.
– Failing to follow the guideline, the act orders up to five years of prison or 50 million ($43,500) fine.
– Not just that a further ban on the fresh registration of these firms can be imposed as well.
– In a past crackdown carried out last year close to 60 exchanges were shut down as they did not meet these requirements of the registration.
– Presently, 35 companies have the proper licenses which will allow them to operate in South Korea.