South Korea’s Financial Services Commission (FSC) is expected to shut down at least 11 crypto exchanges following allegations of illegal activities and fraudulent collective accounts.
According to local news agency The South Korea Herald, several mid-sized crypto exchanges have failed to obtain approval from the country’s top financial regulator. Consequently, the FSC is planning to shut down about a dozen local crypto exchanges.
Citing anonymous sources, the news outlet claimed that the affected exchanges are yet to be disclosed. The sources also argued that the crypto exchanges had to chance at obtaining operational approvals from the commission.
Meanwhile, the report alleges that South Korean regulators are also looking to implement stricter regulations for smaller crypto exchanges.
The seemingly stringent stance has forced a few local exchanges to close shop. On Friday, local crypto exchange Bitsonic announced on Telegram that it was temporarily suspending operations due to “internal and external issues.” Similarly, CPDAX, another local crypto trading platform announced that it would totally shut down operations by September 1.
Larger exchanges are not left out of the mix. South Korean exchanges and crypto service providers have been given until September to register their businesses.