Dubious Cryptocurrency Exchanges to Be Shut down
26 August, 2021
One in 10 of Korea's burgeoning cryptocurrency exchanges will be shut down from Sept. 25 because they do not meet even the country's lax requirements to stay in business.
The government published a list on Wednesday.
Cryptocurrency exchanges must report their certificates for the information security management system (ISMS) and investors' real-name bank accounts to financial authorities by Sept. 24.
But of the 63 exchanges in Korea, 24 including DOCOIN, COCOFX, Ellex, UKE, and GRNBIT, have not yet applied for an ISMS certificate from the Korea Internet and Security Agency and are unlikely to meet the deadline.
"It normally takes at least three months to get an ISMS certificate, so those who applied after July won't get it before the reporting deadline," a government official said.
He advised investors to act fast and get their money out before they are shut down.
Twenty-one exchanges including market leaders Upbit and Bithumb have their ISMS certificates already while 18 have applied in time.
But a Financial Services Commission official said, "Anyone who has applied for an ISMS certificate could be eliminated during the screening process, even if they've obtained a certificate."