Korea Threatens Unregistered Crypto Exchanges With Fines & Jail
Unregistered crypto exchanges operating in the South Korea that have not registered by September 24 face potential fines or even jail time.
The government of South Korea announced today that crypto exchanges will face punishment if they have not voluntarily registered with the country’s authorities by September 24.
The new set of announced regulations will be effective to both exchanges based in South Korea and foreign exchanges that operate in Korean markets. That includes any exchange where the Korean language is supported, marketing is geared toward Koreans, or payments can be made using the Korean won, read the announcement.
Under the Specific Financial Information Act, the punishment for exchanges that continue to operate without registration is up to five years in prison or a fine of up 50 million Won ($43,500 USD). There are plans to block websites belonging to unregistered exchanges in the future as well, according to sources.
Korean crypto exchange users should start checking on September 25 onwards, if the exchange they are using is registered to avoid any related penalties. As of that date, sales made through such exchanges would be illegal within the country.
This announcement is the latest in a series of regulations concerning crypto globally. Earlier this week, the European Union announced plans to crack down on the sending and receiving of cryptocurrency in the hope of limiting money laundering.
According to the US SEC Chairman, cryptocurrency falls under the rules and regulations of security based swaps in the US and noted that more regulation could be coming.
A meeting from the President Working Group on Financial Markets and other US agencies also took place this week concerning the use and risks of stablecoins. Regulatory recommendations are expected to be delivered in the coming months.
