The top financial regulator in South Korea has reportedly issued strict warnings to 11 different crypto exchanges in connection with allegations of fraud. The country’s Financial Services Commission (FSC) said that they will make sure 11 cryptocurrency exchanges are shut down.
According to a report from the local daily, The Korea Herald, the FSC has found these exchanges to be involved in illegal crypto activities. While the reports were leaked the newspaper did not name the exchanges that are on the radar.
Cryptocurrency exchanges in Korea have been facing regulatory heat. The authority has received multiple reports of illicit activities including money laundering. As such it has made the license approval process stricter for any crypto exchanges.
Cryptocurrencies have become extremely popular in South Korea, as such the number of cryptocurrency exchanges have also grown. While it is not clear which exchanges will have to close down, according to a CoinTelegraph report, Bitsonic, a South Korean crypto exchange, had already announced that they would temporarily. The local exchange said the reason is they were having both “internal and external issues.”
Regulatory authorities across the globe have become more vigilant about the activities of cryptocurrency exchanges. Last week, the world’s biggest cryptocurrency exchange by trade volume, Binance was asked to shut down its operations in Malaysia.