The unregistered crypto platforms working within South Korean jurisdiction could witness a stoppage over their services because the Korea Financial Intelligence Unit (FIU) moves in this respect. The financial regulator intends to take measures against up to 16 companies that are of foreign origin. The investigative authority has been notified by the FIU that sixteen providers of the services related to the virtual assets have been doing their businesses without pursuing the required registrations.
16 Unregistered Crypto Websites to Be Restricted by South Korean Financial Regulator
The prominent exchanges, taking into account Phemex, Poloniex, and KuCoin were listed simultaneously to thirteen of the rest of the exchange platforms that the FIU plans to put a stop to.
The entirety of these sixteen exchange venues has been engaged with the business operations aiming at the local customers by providing web portals dealing with the Korean language, conducting promotional occasions specified for the clients in South Korea as well as the provision of the payment options linked to credit cards in terms of crypto purchases.
These operations are all classified as trespassing under the Financial Transactions Report Act. In advance of this, the FIU has moved ahead to confront the unregistered institutions by informing them about their responsibility for registration. Unregistered organizations are to potentially experience 5-year imprisonment.
Other penalties include recompensing a fine of approximately $37,000 as well as a likely prohibition over the registration of the respective institutions within the country in the future.
Registered Exchanges Asked Cut-off Links with the Restricted Ones
The Korea Communications Standards Commission and Korea Communications Commission have additionally received a request to prohibit the provision of domestic access to the above-mentioned web addresses. Providers of the services related to credit cards have been asked to recognize as well as stop the crypto purchases which are made with the utilization of credit cards.
In addition to this, a requirement has also been issued by the financial regulator for the registered exchanges within South Korea to terminate transfers done by the respective sixteen unregistered venues.
The Financial Services Commission of South Korea declared a closing date for the overseas and native crypto businesses for their registration with the appropriate authorities. The due date for this operation is specified as 24th September for the unregistered firms. If they fail to comply with this requirement, then they will be liable to confront the above-mentioned criminal prosecution.