From June 26, South Korean cryptocurrency exchanges will be prohibited from placing for trading internal tokens or cryptocurrencies issued by relatives of the owners of these exchanges.
Regulators in South Korea are constantly tightening their requirements for cryptocurrency exchanges, imposing more and more restrictions on them. The strengthening of regulatory control also affected exchange tokens. Trading platforms operating in South Korea are now prohibited from organizing trades with any cryptoassets that have been issued by those platforms. In addition, the owner of the exchange will not be able to place digital assets issued by his family members and distant relatives on it.
The changes will take effect from June 26th. Exchanges that fail to comply with the new rules will be forced to pay a fine of KRW 100 million (about $ 88,000). These measures are due to the fact that the Financial Services Commission of South Korea (FSC) intends to protect investors and traders from fraud, as well as prevent market manipulation and money laundering.
This month, the country’s regulators are giving cryptocurrency exchanges more and more nasty “surprises.” So, at the request of regulators, many local exchanges were forced to start cleaning up cryptoassets with a high level of risk. A few days ago, the FSC banned local banks from serving traders who do not use their real names and trading platforms that do not comply with KYC and AML procedures.
In addition, last week, the agency banned employees of South Korean cryptocurrency exchanges from trading on the employer’s platform, otherwise they face a similar fine – up to 100 million won. The tax authorities are also under increasing pressure on local traders. In April, the South Korean Internal Revenue Service seized 25 billion won of cryptocurrencies from individual traders and firms to fight tax evasion.
