In South Korea, 16 bitcoin exchanges were accused of violating laws

In South Korea, 16 bitcoin exchanges were accused of violating laws

In South Korea, 16 bitcoin exchanges were accused of violating laws

The South Korean Financial Services Commission (FSC) charged 16 foreign cryptocurrency platforms with providing services to residents without registration. This is reported by News1.

Including KuCoin, MEXC, Phemex, XTcom, Bitrue, ZBcom, Bitglobal, CoinW, CoinEX, AAX, ZoomEX, Poloniex, BTCEX, BTCC, DigiFinex, Pionex.

The mentioned firms organized events and offered services on their websites in Korean. They also offered incentives for buying cryptocurrencies with credit cards. The latter's issuers also face sanctions.

“Unregistered virtual asset operators may be exposed to risks such as personal information leakage and hacking. The Information Security Management System (ISMS) is not properly configured. There is a risk of money laundering,”, the report said.

According to the Law on Special Financial Information, platforms working with citizens of South Korea must undergo ISMS certification and report this to the Financial FSC intelligence.

Violators face five years in prison and a fine of 50 million won (~$38,150). Such companies will not be able to operate in the country for the next five years.

Recall that in July, the FSS launched an investigation into the alleged assistance of local banks to foreign transfers to crypto exchanges in the amount of $ 6.5 billion, which were associated with the “kimchi premium”.

In the same month, the government of the country postponed the introduction of a tax on bitcoin traders until January 1, 2025.

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