Korean crypto exchanges consider suing the government
With the exception of the 4 largest exchanges, almost all South Korean cryptocurrency exchanges may not be able to meet the necessary bank account requirements to stay in business.
Several South Korean exchanges are currently considering filing lawsuits against the government and financial regulators, alleging the country’s crypto laws are unconstitutional, Business Korea reported on Monday (28/28). 6).
The Certain Financial Transaction Information Usage and Reporting Act requires crypto exchanges to submit documents by September 24 showing that they have a real-name account issued by a bank.
However, banks in South Korea are reluctant to provide real-name services to cryptocurrency exchanges due to money laundering concerns.
Several banks, including NH Bank and Shinhan Bank, are conducting risk assessments on Upbit, Bithumb, Coinone and Korbit exchanges.
However, no bank is willing to work with smaller exchanges. As a result, a large number of small exchanges are expected to be forced to close.
One exchange said:
“Now, banks are refusing to initiate their exchange verification process for no apparent reason and most exchanges are not getting a chance to prove themselves. The Financial Services Commission needs to step in immediately.”