FinancialCentre Reports – 38% Of Korean Crypto Exchanges Might Shut Down This September, Leaving Users Oblivious

London, UK, 4 Sep 2021, ZEXPRWIRE – You would barely find a country on the globe that the crypto wave has not struck. FinancialCentre Broker Joe Delaney says that the fever does not have any geographical limitations anymore and traders of all ages, backgrounds and ethnicities have teamed up for a common interest which is making massive amounts of profits. This is a great indication and probably a way to back all the declining and struggling economies that have just recovered from the deadly attacks made by the pandemic. Although all the countries are currently housing many investors interested in digital tokens, not all of them have to go through the same circumstances. Most of the states have decided to regulate crypto and come up with laws to make their use suitable but even then some are very harsh while others continue maintaining a rather softer stance. 

Mr Delaney thinks that the main reason why crypto demands proper regulation before it starts being used commonly is that these digital tokens are highly profitable yet very dangerous. Once you decide to invest not only but the nation is also sailing close to the wind. This is because you are constantly facing a risk that has been placed there by the rising volatility and liquidity and the state because crypto has a very distinct nature. The use of these tokens allows one to stay anonymous and get the deal one. This degree of anonymity makes them a great option for those who wish to use it for illegal activities like funding terrorism or even laundering money from one place to another. In order to fix this, many states imposed straight bans on crypto because they wanted to study how it works and then come up with laws and regulations accordingly. Since then, many countries have lifted the bans and let the traders work in a controlled environment while others still maintain a strict stance. 

Where Does Korea Stand?

Korea is one of the many places where people have been going crazy for crypto. In the year 2017, the cryptocurrency met a boom and the young investors were taking interest largely. Mr Delaney pointed out that South Korea has always been a state where people are looking forward to technology and as anyone could say, crypto was warmly welcomed. Such is the culture that people are quick to adopt any new technological innovations and if it brings money then who could have stopped it. In the year 2017, the crypto industry was particularly thriving. In 2020 the assembly passed laws regulating the use but this has not affected the popularity. According to a survey held this year roughly 40% of the Korean workers had invested in the area. While Bitcoin is the only worth investing crypto for many, 90% of South Koreans have invested in coins apart from Bitcoin. 

Korean Authorities Issue Deadlines

With the new regulations in the country, any exchange that wishes to operate will have to obtain a government-backed certificate which will be used to see if the firm is in a position to manage information and protect the assets of the users. All firm owners need to get the Information Security Management  System Certificate from the Korean regulatory authority KISA (Korean Internet and Security Agency). If any company fails to meet all the conditions laid by the regulators then they will be shut down. Today, out of 10 crypto exchanges, 4 are yet to apply for the state certificate in order to protect the information assets. If these firms fail to do so till the deadline which is next month they can be stopped from operating any time. These companies seem to be throwing caution to the wind and have not warned any users about the repercussions that the firm and consequently the users might have to face. 

KISA has released a list of exchanges that haven’t filed for a certificate till now. They have revealed that this 38%, which is 24 exchanges out of 63, might be forced to close immediately after the registrar period comes to an end on the 24th of September 2021. It was also told that most of these 24 are working normally. The certificate is given out after a rigorous evaluation and investigation. This investigation spans 18 sectors of data management and 104 different categories. Once a company applies for the certificate, it takes the institute 6 months to probe and finally give out the certificate. 

Time To Act Responsibly

Mr Delaney believes that it is time for all the exchanges to act responsibly and get themselves registered so that we do not have to face any more financial losses. After the Japanese Crypto Exchange Liquid was attacked, all the firms should have been on their toes but it is unfortunate that they continue putting the assets of thousands at risk. 

Disclaimer: Our content is intended to be used for informational purposes only. 

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