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S. Korean regulators firm on looming shutdown of numerous crypto exchanges Updated: 2021-07-06 17:00:54 KST

South Korea's financial authorities are ramping up their crackdown on certain crypto exchanges.
According to the local banking industry, South Korea's financial authorities have rejected a request by local banks, which had asked the government to exempt them from any blame if problems were to arise at the exchanges.
Following the rejection, numerous exchanges that don't already have a partnership with a bank face the threat of closure in September, which is when they must verify users' real-name bank accounts in order to continue operations in accordance to a revision of the Act on Reporting and Using Specified Financial Transaction Information.
This is something the head of the financial watchdog has been warning about for quite some time.

"Exchanges have mushroomed to around 200 in number and many could close in September, and many people could ask why the government provides no protection to such investors."

Meeting with reporters recently, he also made it clear that banks hold the primary responsibility, if money laundering occurs on a cryptocurrency exchange they are linked with.
This means most local exchanges are on the verge of closure, as only four of the market leaders in South Korea, including Upbit and bithumb, have partnerships with banks to verify their users' real-name bank accounts.
Kim Hyo-sun, Arirang News.
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