South Korea banned access to unlicensed crypto asset platforms within the scope of an effort to strengthen its financial regulations. At the request of the country financial intelligence unit (FIU), Google prevented the 17 platform from accessing user access. This application aims to reduce financial crimes and money laundering concerns.
South Korean Crypto Actions
FIU, unlicensed platforms identified platforms, Kucoin, Mexc, Phemex, XT, Coinex, Bitmart and Poloniex said. These platforms were evaluated within the scope of concern that they did not comply with local laws and the increase in financial risks and criminal activities. The authorized institutions follow the process closely as they aim to prevent the state -free operational situations.
Following the official request, Google started the application of access to these platforms. Downloading and updating the applications of these companies through the Google Play Store was also stopped. Apple Korea and Korea Communication Standards Commission has been cooperated. These measures are considered steps to protect local users.
Authorities’ explanations
Regulatory institutions, platforms that do not comply with the licensing conditions may face criminal sanctions, he said.
For unlicensed platforms, up to five years imprisonment or a fine of up to 50 million WON. – FIU
Financial authorities require that crypto asset platforms serving in the country fulfill local licensing conditions. Criteria such as providing services in Korean language, local marketing and using the local currency for transactions are highlighted.
South Korea’s solid approach stands out when compared to different understanding of regulation in the international arena. Strict inspections and sanctions can help prevent financial criminal activities.
These applications are expected to be considered as a step to increase user security in the digital asset market. The country will closely follow the regulations in order to prevent the recurrence of similar situations.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
