Cryptocurrency exchanges are considering filing a lawsuit against the South Korean government for shirking its supervisory responsibility
Small cryptocurrency exchanges in South Korea are considering suing the government and financial authorities, claiming that the country’s crypto law is unconstitutional because of the bank account requirements.
Except for the Big Four crypto exchanges, including Upbit, Bithumb, Coinone, and Korbit, all Korean crypto exchanges may be unable to meet the bank account requirements needed to stay in business.
According to the Act on Reporting and Use of Certain Financial Transaction Information, the crypto exchange must submit a document by Sep. 24 showing that a real-name bank account has been given by a bank.
“At present, domestic banks are reluctant to extend their business partnerships with cryptocurrency exchanges in order to protect themselves from the possibility of involvement in money laundering. Although K Bank, NH Bank and Shinhan Bank are conducting risk assessment in relation to the four major exchanges of UPbit, Bithumb, Coinone and Korbit, the same assessment is not in progress in the other exchanges.” according to the report by Business Korea on Monday.
This means all small crypto exchanges are expected to be forced to shut down.
“These days, banks are refusing to initiate their cryptocurrency exchange verification processes without clear reasons and most exchanges are failing to get a chance to prove themselves. The Financial Services Commission needs to step in right away,” one exchange told Business Korea.
- Crypto Crime In South Korea Is On The Rise Bringing The Country’s Losses To $5 Billion In The Last Five Years
- Korean Government’s Latest Cryptocurrency Clampdown Following A Big Tax Plan: Ban Cross Trading And Fine Employees Who Trading