Financial Services Commission (FSC) warned that 24 crypto exchanges operating in South Korea can face legal action by the end of September.
A press statement released by the authorities concluded the around 24 crypto exchanges operating in multiple Asian countries can face operational shutdown as the September 25th deadline approaching fast.
In less than a month, 24 out of 63 crypto exchanges in Korea could be shut down. These 24 shortlisted crypto exchanges are those which have yet to take the necessary steps to ensure the adoption of a legal framework designed by the Korean Law Enforcement agencies.
About six months ago, Korean FSC ordered crypto companies operating in the country to implement the regulatory provisions announced earlier this year. Later on, the Korean FSC further delayed its actions till the 24th of September. The majority of the cryptocurrencies operating in South Korea adopted those regulatory provisions. However, the 24 crypto exchanges have yet to take any notable step.
In a recent statement, Korean Financial Services Commission said that shortlisted exchanges did not comply with regulatory provisions.
These 24 firms even failed to provide the Information System Management System, which is the first regulatory requirement. The ISMS is being issued by the Korea Internal and Security Agency. Providing this certification is a symbol that the cryptocurrency exchange is capable of protecting their customer’s data and investment present on the exchange.
Korean stats authorities are very strict when it comes to the data protection of netizens. Since the deadline ends in less than a month. It seems impossible that these 24 crypto exchanges might be able to comply with the regulatory provisions. Apart from that, the data further revealed that 18 other crypto exchanges have filed for approval from regulatory authorities and their applications are under process.
However, 21 other crypto exchanges have already got approval from KISA. However, the 24 crypto exchanges, which are yet to take a step for approval, would soon move forward for getting certified by the KISA. But authorities have already hinted to reject their applications, as they are not willing to extend the regulatory deadline. From the start of the crackdown up till now, Korean Regulatory authorities have shown no relaxation regarding the crypto regulations.
There are very few bigger names in the list of those 24 crypto exchanges, which cloud face legal actions. Korea’s Financial Services Commission has also informed that those crypto exchanges that have received approval from KISA do not provide them with safe passage. On the other hand, the crypto community does believe that any crypto exchange with no capacity to save the consumer’s data has no right to operate within the marketplace.