Eun Sung-soo, director of the South Korean Financial Services Commission (FSC), said he was concerned about the suspension of all cryptocurrency exchanges in the country, saying that no exchange had yet registered to be licensed under the new rules. .
During a meeting of the National Assembly Policy Committee, Eun Sung-soo announced that the agency had not yet made any plans for a “virtual asset service provider” (VASP) based on recent legal amendments. Has not received. He expressed concern about the continuation of their activities in the field of cryptocurrency exchanges, stating that there are about 200 large exchange offices operating in South Korea but have not yet applied for VASP licenses. He says that if the money changers do the same, their exchanges may stop soon.
Eun Sung-soo, citing South Korea’s Anti-Money Laundering Act (AML) and the Financial Transaction Report (FTRA), says some of the cryptocurrency exchanges were reformed last year. Under the amended rules, VASPs are required to register their exchange information.
All exchange offices in this country have until September 24 (October 2) to register and apply so that the commission can approve the necessary license for their activities. In fact, they are the only approved exchanges that have complied with anti-money laundering laws.
Out of about 200 large exchange offices in the country, only four large exchange offices have started partnerships with local banks. Some industry insiders believe that these four exchanges will continue to do so in order to survive under high scrutiny, although Eun’s remarks will raise a new wave of concerns about their activities. .
In the first quarter of 2021, about 2.49 million new users have opened accounts in exchange offices, 64% of whom are in the age group of 20 to 30 years. This age group has invested about $ 898 million in their exchanges, which will be a severe blow to these investors if the exchanges stop.