The Chairman of South Korea’s top financial regulator, the Financial Service Commission (FSC), Eun Sung Soo, at a general meeting of the National Assembly’s Political Affairs Committee last week warned that all of the nation’s 200 cryptocurrency exchanges could be shutdown.
Chairman Eun explained that cryptocurrency exchanges are required to be registered with the FSC under the revised Special Fund Act on Reporting and Using Specified Financial Transaction Information. The revised bill of the Special Fund Act that went into effect on March 25 and its provisions will be enforced on September 24, after a six month grace period. The revised bill requires cryptocurrency exchanges to meet requirements such as obtaining Information Security Management System (ISMS) certificate and issuance of real-name accounts. He revealed “We are now accepting accepting applications for them to officially register their business by the timeline, but no exchange operators have complied”. He warned that since no companies have registered, “They could be shutdown suddenly in September”.
Meanwhile, many cryptocurrency exchanges are concerned that they may not be able to meet the requirements, particularly regarding real-name accounts, which may lead to a mass shutdown of exchanges.
Furthermore, the FSC chairman said that according to the announcement made by the Ministry of Strategy and Finance in February, profits from cryptocurrency investments will be taxable starting next year 2022.