Financial Authorities End Consulting for Cryptocurrency Exchanges... Zero Reports Filed

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] Financial authorities have completed consulting on the IT and security systems of cryptocurrency exchanges.

According to financial authorities on the 25th, the Financial Services Commission (FSC) finished consulting cryptocurrency exchanges last week and has begun reviewing the results. The Financial Intelligence Unit (FIU) under the FSC, along with officials from the Korea Securities Depository, Korea Exchange, Ministry of Science and ICT, and Korea Internet & Security Agency (KISA), conducted on-site consultations for a week starting from the 15th of last month, checking the stability of IT systems and other aspects at the cryptocurrency exchanges that applied for the consultation.

In accordance with the revised Act on Reporting and Using Specified Financial Transaction Information (the Specified Financial Information Act), cryptocurrency exchanges must meet requirements such as obtaining Information Security Management System (ISMS) certification and issuing real-name accounts, and must report to the authorities by September 24 to continue operations.

After September 24, the authorities plan to review the anti-money laundering systems and compliance with trading prohibitions by exchange executives and employees for the companies whose reports have been accepted. As of the 21st, no exchanges have submitted their reports.

The FSC maintains its position that no grace period will be granted to exchanges that miss the reporting deadline, raising concerns that many small and medium-sized exchanges will effectively shut down starting September 25.

Meanwhile, small and medium-sized cryptocurrency exchanges have been delisting coins and ending trading support since the beginning of this month. Exchange Aprobbit decided to delist 11 coins last month and delisted 3 coins on the 16th of this month. On the 21st, it designated 1 coin as an investment caution item and decided to consider delisting it by the 30th. Exchange Foblegate also delisted 31 coins throughout June and decided to delist 21 coins by the 21st of this month.