South Korea Closes 11 Cryptocurrency Exchanges

The Financial Services Commission, South Korea’s main financial regulator, claims to have shut down a number of cryptocurrency exchanges. The move stems from accusations of fraud in those exchanges.

The first step of the FSC is to temporarily halt the activities of about 11 average South Korean kryptobirzh. In a statement on Sunday, the Local News Agency Korea Herald said the FSC’s move was based on a series of unspecified operations related to the exchanges.

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The report alleges that all of these exchanges had fraudulent bulk accounts and a number of illegal actions.

The names of the exchanges have not yet been released, according to the news release, citing unknown industry sources. However, these exchanges will probably never receive transaction clearance from the authorities.

News sources are monitoring that the FSC will refuse operational approval of all affected crypto exchanges. In October, this South Korean financial regulator wants to tighten regulation on small exchanges.

News of the alleged collapse came amid the recent suspension of operations of some small crypto exchanges in South Korea. One such suspension is Friday’s announcement of bitsonic, a local cryptocurrency exchange.

The message on Telegram’s official channel said the exchange would temporarily stop working due to internal and external problems.

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Similarly, CPDAX, another small crypto exchange, said it would cease operations from September 1. The Darlbit exchange ceased operations. It comes after withdrawal and deposit services were suspended the previous month.

However, the FSC is still responding to its latest plans to crack down on these growing crypto exchanges.

Tightening regulation of cryptocurrency exchanges in South Korea

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