Korean minister says all 200 crypto exchanges within the nation face a threat of closing down

Eun Seong-soo, chairman of the Finance Committee in South Korea, stated this morning that over 200 cryptocurrency exchanges on the threat of being closed down in September this 12 months in the event that they fail to observe the related rules, as per a report on main native outlet Chosun.

He added officers have been additional planning to impose taxes on cryptocurrency buying and selling and that the federal government had “no plans to guard” crypto traders.

#PANews 🏦Apr 22, S. Korea #FSC chief #EunSungSoo claimed all #cryptoexchange in Korea might be shut down in September.

🗣️Eun acknowledged “About 200 crypto exchanges in S.Korea ought to register to function however none of them has accomplished the method but” in Congress. pic.twitter.com/iJcmdOpw92

— PANews (@PANewsOfficial) April 22, 2021

Rules for Korea

Earlier this 12 months, South Korea launched new legal guidelines for crypto companies and merchants within the nation, introducing stricter rules, new KYC insurance policies, a distinct tax scheme, and requiring all crypto companies to register within the nation.

The revised invoice of the Particular Cash Act got here into impact on March 25 and takes impact from September 24 after a six-month grace interval. The modification requires crypto companies to satisfy necessities corresponding to info safety administration system (ISMS) certification and issuance of real-name accounts. 

However as per Eun, no crypto alternate has registered with the federal government underneath the Particular Cash Act, to which he stated, “There are canine, however they’ll all be shut down. They may very well be shut down instantly in September.”

The strict feedback didn’t finish there. Eun stated that whereas fairness and conventional markets ‘shield’ traders, the crypto market doesn’t and is even in comparison with “shopping for and promoting photos.”

“I don’t suppose that the individuals ought to shield (traders) as a result of the individuals are investing and concerned with some huge cash. If you happen to go the incorrect means, it’s the incorrect means,” he acknowledged.

Comply with up, Korean Gov: “We are going to tax cryptocurrency however we do not contemplate them as monetary belongings and we aren’t considering of defending them” https://t.co/1YrWycTHCM https://t.co/EU4QkSG7CJ

— Doo (@DooWanNam) April 22, 2021

Booming crypto market

Eun’s feedback come amidst a booming crypto market in Korea and elevated buying and selling volumes. As CryptoSlate reported final month, some days noticed crypto buying and selling volumes exceed these of the nation’s inventory market buying and selling volumes—in what was the first-such situations anyplace on this planet.

As per analytics software CoinGecko, the three largest Korean crypto exchanges traded almost $20 billion previously day alone, with different high exchanges seeing volumes above $100 million.

In the meantime, whereas Eun’s statements spell doom for native exchanges in South Korea, native business specialists say it may very well be extra of a warning than an outright judgment. 

“It’s an comprehensible assertion as there was an uptick in varied points. However I take it extra as a warning,” shared Doo Wan Nam, the Seoul-based enterprise improvement head of MakerDAO in Asia. Korean merchants are possible hoping the identical.

Like what you see? Subscribe for updates.