FSC Probes Crypto Exchanges in South Korea, 20 Platforms Under Scrutiny

• The South Korean financial regulator, the Financial Services Commission (FSC), is launching a probe into 20 crypto trading platforms that do not have licenses for fiat KRW trading.
• The FSC wants to investigate anti-money laundering protocols and has started with GDAC – one of the exchanges involved in last year’s controversial delisting of Wemix token.
• Upbit, Bithumb, Korbit and Coinone are the “big four” crypto exchanges that have had banking partnerships in place for several years.

South Korea’s Crypto Trading Platform Probe

The Financial Services Commission (FSC) of South Korea has launched a “comprehensive inspection” of 20 crypto trading platforms that do not have licenses to trade with fiat KRW. The investigation seeks to examine anti-money laundering protocols on these platforms.

Background on Crypto Exchanges in South Korea

Under South Korean law, crypto-to-crypto trading services are allowed provided certain criteria are met. To obtain fiat-trading licenses however, exchanges must form partnerships with commercial banks which will provide all exchange users with real name-, social security number-verified accounts linked to their crypto wallets. Upbit, Bithumb, Korbit and Coinone are the “big four” crypto exchanges that have had such bank partnerships in place for many years now while only Gopax has been successful amongst the remaining 21 others so far.

FSC Begins Inspection at GDAC

The FSC stated that it would begin its probe with GDAC – an exchange involved last year in the controversial delisting of Wemix token created by domestic gaming giant WeMade. It was alleged by some insiders that this was due to FSC seeking a deal with a bank ahead of GDAC application to rejoin the KRW market but officials at GDAC declined knowledge about any date set for inspection by FSC yet.

What Are They Investigating?

This comprehensive inspection is focused on examining anti-money laundering protocols as mandated by law according to media reports and sources from within FSC circles suggest that this could be similar investigations conducted by other countries across Europe and US over past few months targeting suspicious activities around cryptocurrency transactions like frauds etc.

Conclusion

South Korea’s top financial regulator is taking firm steps towards ensuring compliance regulations regarding cryptocurrencies by conducting detailed inspections and investigations into various trading platforms operating without approval from proper authorities or having suspicious activities attached to them or their transactions.

FSC Probes Crypto Exchanges in South Korea, 20 Platforms Under Scrutiny
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