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Crypto Exchanges Weep as FSC Deadline Approaches

South_Korea_braces_for_two_thirds_of_crypto_exchanges_to_shut_down
  • The deadline for South Korea’s strict new regulations is almost here.
  • The FSC is not budging on extending the deadline.
  • About 2/3 of the country’s crypto exchanges will likely shut down.

South Korea’s financial regulator — the Financial Services Commission (FSC), has set a deadline for all crypto exchanges operating in the country. The deadline is set for September 24.

In light of this new deadline, many cryptocurrency exchanges are unable to meet the FSC’s requirements. Hence, it seems that over 24 crypto exchanges have decided to close shop instead.

In most cases, meeting these requirements needs more time. To combat this, some crypto exchanges are limiting their offerings. For instance, Huobi Korea cut its support in the region about a month ago.

Meanwhile, about 20 crypto exchanges so far have met a few if not all of the new conditions. Either they will have to limit their services or try their best to meet the other requirements before the deadline.

Some politicians have urged the regulator to extend its deadline. They hope to buy the exchanges more time as that seems to be the core issue. However, the FSC refuses to budge on this matter.

The President of the Korea Finance Consumer Federation — Cho Yeon Haeng, says that major investor losses will be inevitable. In fact, the country is expecting a loss of over $2.6 billion.

On the other hand, the FSC has told exchanges to warn their users of a possible closure before September 17. If any of these exchanges continue to provide their services without having met the new requirements, the consequences are high.

In detail, these exchanges will be subject to five years in prison or will have to cough up around $43,500 in the form of a fine. The FSC is taking no risk for initiating its tighter regulation law. It intends to eliminate all crypto-related illicit activities.

One of the exchanges that have fully qualified so far is Upbit. This is good news as South Korea’s present crypto trading industry is held by Bithumb, Coinone, Korbit, and Upbit. In fact, together, they hold 90% of the nation’s digital assets in trading volume.

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