Not only are they racing to embrace a long list of compliance measures in a timely fashion using AML protocols, exchanges will finally have to submit lists and react to this Financial Services Commission (FSC) before listing. List and delist any coin in their stage.
And this not only made investors more confused by the sudden destruction of some tokens, the movement by exchanges caused chaos in the Korean crypto sector.
Chaos at the Korean Crypto Market Before September 24th
Events in recent times appear to demonstrate that Korean exchanges are grabbing on to FSC policies — and seem to be eager to delist tokens ahead of official statements, possibly might be aimed at garnering regulatory assistance.
As news broke this week, GDAC and Huobi Korea captured the attention of the FSC by declaring the delisting of tokens issued by the market.
Exchanges, like Upbit, have gone even farther, delisting five coins “suddenly” last week and adding another 25 for their list.
One crypto dealer they stated:
“Politicians have predicted the crypto business the’Wild West.’ Well, the confusion they are causing now is far more chaotic than that. I guess the government does not care about us. Maybe they will regret it when we get a chance to vote ”
But another crypto investor, surnamed Kim, is stricter: “All of this has been inevitable since the time the regulation was announced. Regulators will struggle for a while, and so will exchanges. And there will be more volatility before September 24, and possibly beyond. But eventually, the dust will settle and a new, more stable reality will emerge. Until then, we can only choose to HODL or continue trading and accept the uncertainty.”
Violators of the FSC’s most current ordinance will face penalties of up to $88,500 and business suspension, together with the ruler promising to stamp out “conflicts of interest.”
Channel A has said that a group of investors is now “preparing a lawsuit” against a cryptocurrency exchange which has delisted a coin.
And the exact media lent investors as stating that some viewed the mayhem as an chance to get tokens at cut expenses, with some national platforms that offer discounts of up to 80%.
The media station also added that some forecasters have called that the “chaos in the crypto market” to be “exacerbated” by government regulatory pressure, exchanges’ responses and sentiment. Investors’ direction “until September”.
Korean exchanges have to register and devote AML protocol compliance with the FSC by September 24
The FSC first called for crypto-focused updates to the nation’s AML frame in November 2020 in a bid to remain on track with the Fiscal Action Task Force’s crypto oversight regime. main.
South Korea’s National Assembly voted in favor of this upgrade on March 5. Cabinet officials gave the green light to the law on March 17. The FSC began accepting applications on March 25, but has continued since. So much, no exchanges have implemented. In reality, exchanges have until September 24 for their registration to be approved by the FSC, and the FSC will only accept trades that can demonstrate and commit to complying with the AML system. Trading platforms have also been given a 6-month grace period to achieve data security management system (ISMS) certification, demonstrating management structure with the regulatory Financial Services Commission (FSC). ) And get a real-name banking partner from a national commercial bank.
In addition to fulfilling regulators in their AML compliance, they’ll also have to pass risk assessment checks from banks, who will finally be permitted to decide the destiny of the sector. Korea’s exchange industry. More and more banks are excluding the possibility of cooperating with trades, causing exchanges to fear for their own future.
With the regulatory tightening, crypto companies involved in custody, trading, trading, digital and exchange wallet services will need to register with the FSC before facing sanctions. Potential non-compliance starting in late September, the FSC said.
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