Chairman of the Finance Committee in South Korea said over 200 cryptocurrency exchanges at the risk of being closed down in September this year

In early 2021, Korea enacted a new law for domestic cryptocurrency traders and traders. In it, the Korean government introduced stricter regulations, new KYC policies, a different tax scheme, and required all crypto businesses to register in the country. Even so, the Chairman of the Financial Commission in Korea said that more than 200 cryptocurrency exchanges are at risk of being closed in September this year if they fail to comply with the relevant regulations.

The 200 Korean domestic cryptocurrency exchanges face the risk of being shut down

Eun Seong-soo, the chairman of the Financial Commission in Korea, said this morning that more than 200 cryptocurrency exchanges are in danger of being closed down by September this year if they fail to comply with the relevant regulations.

He added that officials are planning to impose additional taxes on crypto transactions and that the government has no plans to protect crypto investors.

According to Eun, there are no crypto exchanges registered with the government under the Special Money Act.

He said:

“There are dogs, but they can all be shut down. They could be shut down suddenly in September.”

Harsh comments don’t end there. Eun said that while the stock market and the traditional market protect investors, the crypto market doesn’t do that.

He said:

“I don’t think that the people should protect (investors) because the people are investing and interested in a lot of money. If you go the wrong way, it is the wrong way.”

Eun’s remarks came amid the booming crypto market in Korea and increased trading volume. Among them, the trading volume of cryptocurrencies exceeds the trading volume on the stock market of the country – in the first instance such as anywhere in the world.

According to analytics tool CoinGecko, Korea’s three largest crypto exchanges have traded close to $ 20 billion in just the past day alone, with other leading exchanges having volumes over $ 100 million.

Meanwhile, while Eun’s statement marks the doom for local exchanges in Korea. This could be more of a warning than a complete judgment.

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