• South Korea’s financial regulator, the Financial Services Commission (FSC), has begun a comprehensive inspection of the nation’s crypto exchanges.
• The FSC will probe 20 trading platforms that do not have licenses to trade fiat KRW.
• To obtain fiat-trading licenses, exchanges must form partnerships with commercial banks and provide all exchange users with real name-, social security number-verified accounts linked to their crypto wallets.
South Korea’s Crypto Exchange Probe
South Korea’s top financial regulator, the Financial Services Commission (FSC), has begun a “comprehensive inspection” of the nation’s crypto exchanges.
What is Being Investigated?
The FSC specifically wants to probe the 20 trading platforms that do not have licenses to trade fiat KRW. The media outlet noted that this is “the first time” the FSC has conducted a “comprehensive inspection” of exchanges that do not operate in the fiat markets.
The outlet said it expected that the inspection will focus on anti-money laundering protocols.
Requirements for Obtaining Licenses
Under South Korean law, exchanges can offer crypto-to-crypto trading services, provided they meet certain criteria. To obtain fiat-trading licenses, however, they must form partnerships with commercial banks.
These banks must provide all exchange users with real name-, social security number-verified accounts linked to their crypto wallets.
Which Exchanges Will Be Investigated?
The FSC stated that it would begin its probe with GDAC. This is one of the exchanges involved last year in the controversial delisting of the Wemix token – a coin created by the domestic gaming giant WeMade. GDAC left observers stunned when it announced that it would be listing Wemix – just two hours after the “big four” announced they would be removing the coin from their platforms.
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< P > The media outlet reported that some insiders believe the FSC has decided to start its probe at GDAC for this reason.But others appear to believe that authorities may have started its investigation with an eye towards possible GDAC application rejoin KRW market. This suggests behind–the–scenes deal may have struck bank.. P >