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