More Than Dozen South Korean Crypto Exchanges Met With Country’s Financial Regulator

A meeting in closed doors was held between the Financial Services Commission of South Korea (FSC) and multiple locally operating crypto trading platforms on 3rd June 2021. Local media reports highlighted that the participant exchanges had the specific certification known as Information Security Management System (ISMS).

The South Korean crypto industry is on fire for the past 18 months. It is one of the most overwhelmingly broader crypto industries of the world in competition with countries like the US and UK. For the past 12 months, crypto trading’s daily trade volume in South Korea is almost over and above US$ 7 Billion.

Investors from all age groups, such as 16 to 20 and then 20 to 55, are actively associated with the crypto industry. A recent survey conducted in South Korea also suggested that as compared to mature age investors, there is a large portion of young crypto investors. Most of these young crypto investors are persons from ages 16 to 40. This is enough to prove that with regard to crypto interest, the South Korean nation is ahead of all nations of the world.

However, there is a talk regarding crypto legislation in South Korea as well. But the Government is aware that people have a wider interest in crypto products so they have to take action in the interest of the public. For this purpose, prior to presenting any crypto legislation, the Government had promised that it will take on board all stakeholders.

In the same spirit, a meeting was held at closed doors at the head office of FSC. The meeting was attended by higher officials of South Korean financial regulators as well as locally operating crypto exchanges. It was noticed that at least 20 exchanges’ CEOs were present in the meeting. The exchanges included both, small as well as medium-sized firms and were those firms which were ISMS certified. For instance, the ISMS-certified firms included firms such as Flybit, Coinncoin, Upbit, Coinone, Bithumb, Poblegate, Korbit, Tennten, and Kordax. They met the authority for discussing the future of the South Korean crypto industry.

It was noted that the exchanges also recorded their grievances with the authority.

The agenda of the meeting was disclosed to be inviting exchanges for discussing and debating the “Report Registration Guidance Consulting”. It was reported that only four participants namely Korbit, Bithumb, Coinone, and Upbit were able to meet the threshold comprised in the meeting’s agenda. However, the rest of the meeting participants apprised the authority that they were facing hardship in meeting the threshold.

There was another news report surfacing in the South Korean media that talked about reporting crypto ownership with the tax authority. The South Korean tax authority is of the view that a large number of South Korean crypto investors have established trading accounts with foreign exchanges. The tax authority has asked such investors to report their crypto holdings with foreign entities with the authority.