Bitcoin Exchanges Could Be Turn off en Masse
23 April, 2021
Financial Services Commission Chairman Eun Sung-soo on Thursday warned that a huge selection of cryptocurrency exchanges face closure in the government's crackdown on the booming trade.
"There are 200 cryptocurrency exchanges in Korea, nonetheless they can all be shut down," Eun told the National Assembly in an insurance plan hearing. "They may be suddenly closed down in September."
"We are accepting registrations" under relevant new laws, "but no enterprise has registered up to now."
The brand new laws compel exchanges to make sure that investors trade cryptocurrency only via real-name bank accounts from September, and if indeed they fail to comply they can have their business suspended. The aim is to prevent money laundering and other criminal activity.
The cryptocurrency market is chaotic and overheated, with one new cryptocurrency surging 100,000 percent through the first thirty minutes of trading. Financial authorities fear the fallout could possibly be devastating since over fifty percent of cryptocurrency investors listed below are in their 20s and 30s.
When a lawmaker complained that protections are insufficient, Eun said, "The federal government can protect them only once they are classified as financial investors. The federal government cannot protect everything."
The government will not recognize cyber money as a financial product under existing regulations. "I'm afraid the craze is only going to escalate if the cryptocurrency market is officially recognized," Eun said.
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