The South Korean government has announced that cryptocurrency exchanges will be punished if they are registered with the country’s authorities by 24 September. According to the release, this includes any exchange where Korean language is supported, marketing is oriented towards Koreans, or payments can be made using the Korean won. Under the Specific Financial Information Act, the punishment for exchanges that continue to operate without registration could be up to 5 years in prison, or a fine of up to approximately $ 43,000.
As of September 25, non-compliant exchanges would in fact be illegal within South Korea and these new regulations could affect the value of Bitcoin and other cryptocurrencies.
This announcement is the latest in a series of regulations regarding cryptocurrency around the world. The US SEC chairman also said that further regulations could come and the European Union has announced plans to regulate the receipt of cryptocurrencies in hopes of limiting money laundering. A meeting of the President Working Group on Financial Markets and other US agencies on the use and risks of stablecoins was also held this week. Regulatory recommendations are expected to be delivered in the coming months.
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