• Cryptocurrency Exchanges By September, you must register with the South Korean regulator or face a ban

  • Foreign virtual asset services providers (VASPs), such as cryptocurrency exchanges that operate in South Korea, have until September 24, 2021, to register with the local authority. Otherwise, the Financial Services Commission warned, they risk being barred from providing services to Koreans.

    Korea’s Crypto Exchanges Could Be Blocked?

    Earlier this year, the Asian country enacted new legislation that imposes stiff penalties and fines on all VASPs who fail to notify suspicious transactions and maintain pertinent data. The Act went into force on March 25th, but such businesses were given a two-month grace period.

    The Financial Services Commission (FSC) has announced that VASPs have until September 24, 2021, to register through the Korean Financial Intelligence Unit (KoFIU).

    As a result, the watchdog has sent notifications to 27 international companies, reminding them of their responsibilities.

    “The Act compels VASPs to register with the KoFIU since the law applies equally to foreign VASPs who perform operations outside of Korea but have domestic effects in Korea.

    As a result, if any VASPs conduct business activities targeting Koreans, they must register with the KoFIU and comply with the Act’s requirements for such business operations.” – reads the statement.

    If any of these firms fail to register with the regulator, they will be forced to stop doing business with Koreans as of September 25th, 2021. They will face penalties of up to five years in prison or a maximum punishment of KRW50 million (about $44,000) if they continue to operate.

    Small Exchanges to File a Lawsuit Against the Government?

    South Korea, which has recently tightened its regulatory grip on the business, has singled out bitcoin exchanges for special attention. However, several smaller trading venues have apparently chosen to take action because they fear the legislation will have a negative impact on their operations.

    As a result, they considered pursuing legal action against the government, which has advised local banks to stay away from most exchanges except the majors UPbit, Bithumb, Coinone, and Korbit.

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