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South Korean exchange tokens falling under regulators scrutiny

South Korean exchange tokens falling under regulators scrutiny

South Korean regulators have banned crypto exchanges from handling coins they issued themselves. This increased scrutiny is shaking South Korea’s cryptocurrency space. Moreover, the regulations have extended to include the exchange tokens.


Exchange Tokens


A cryptocurrency exchange usually issues exchange tokens. The exchange tokens also benefit the holder through reduced trading fees, regular token burns, or other means.


Crypto Assets

According to the Arirang report, regulators have banned cryptocurrency exchanges from handling assets also. Moreover, the law extends to any assets issued by family members, spouses, or distant relatives. The law is expected to come into effect on June 26.


Business Operations

All the business operations of companies that fail to comply with the new regulations will be suspended. These companies also have to face fines of up to $88,000.


FIU

South Korea’s financial intelligence unit recently contacted 33 cryptocurrency trading platforms. FIU informs them about the upcoming field consultation due no later than September 24.


Upbit

Upbit is a South Korean exchange. It delisted a handful of coins. It also issued strident investment warnings on another 25 assets. This represents 14% of all coins the exchange has listed.


Inbound Deposits

Moving forward, Upbit is not accepting inbound deposits for the 25 coins mentioned in the warning. It’s said that they will further review the assets and decide whether or not to delist them completely. However, the deadline for its final decision on tokens is Friday, June 18.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.