South Korea To Block 16 Exchanges
In today's YIYL we head back to Asia, after India laid the crack down on its exchanges, it looks like South Korea’s Financial Services Commission (FSC) is looking to follow the same route, maybe not on criminal charges but just to reduce the brazen gambling we see in Korea due to all these shitcoin casinos giving retail access to a bunch of unregulated securities.
According to reports 16 foreign crypto exchanges are currently under investigation in South Korea for violating the Specific Financial Information Act.
The law prevents unregistered crypto exchanges from operating without a license, but the 16 firms have been providing crypto services for Koreans and alleged that they are hosting events targeting Koreans.
The affected exchanges include:
- MEXC
- KuCoin
- CoinW
- CoinEX
- ZB.com
- Bitglobal
- Bitrue
- Poloniex
- BTCEX
- Phemex
- XT.com
- Pionex
- BTCC
- DigiFinex
- AAX
- ZoomEX.
The regulators had informed the firms in question about their obligation to report their operations, but they failed to comply which just shows that these firms think because they are in a gray area they can skirt regulation.
Now I am not one calling for regulation on these entities, frankly, I don't care if you do, they would either die under regulation or get crushed for offering a shitty product and getting sued as we see with other exchanges that have mishandled funds thinking they're too smart for the law.
Exchanges to be blocked
The FSC wants to make an example of these guys and block these exchanges and asked Korea Communications Commission to block domestic access to their websites. Sure if you're motivated enough you could access them on a VPN or via Tor but getting funds to it will be the tricky part unless you can access stablecoins locally.
As for the money side, the regulator wants to bar credit card companies from rendering their services to these firms. So as I mentioned it's going to be all about stablecoins for the degens.
Exchanges will need to be certified
South Korea will probably want to secure some of the fees from these guys through this ISMS certificate they keep pushing. Apart from not meeting their compliance standards the officials added that malicious actors could also use the exchanges to launder money an age-old excuse we see thrown around to push for regulation.
Under the Act, an individual operating an unregistered and illegal exchange could be imprisoned for up to 5 years or fined 50 million won ($37,900).
Additionally, the operator will also be unable to register as a domestic virtual asset operator for five years. The law applies to both foreign and local exchanges operating within the country. This will be interesting to see if they pull it off, Koreans are known for yolo'ing into all sorts of shit, because their WON is a total shitcoin in any case.
Will they push these Korean degens towards on-chain exchanges or will P2P exchanges see an increase in volume?
South Korea’s crypto regulations
South Korea has one of the most comprehensive legal frameworks for the crypto industry. Having 35 virtual assets providers to register locally to add to the five of those exchanges, that already comply such as UpBit, Coinone, Gopax, Korbit, and Bithumb.
These exchanges are responsible for over 99% of the crypto transactions in the country, so I don't see these 16 being blocked if they are, making too much of an impact.
I honestly think this comes off as the embarrassment of Do Kwon and his scam Terra ecosystem has led to increased emphasis on crypto regulation in the country.
This is what you get shitcoiners, if you keep fucking up, you're going to get the law on your bac.
Sources:
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Dear @chekohler, You are correct!
S-Ko's ruling classes and officials are now taking the lead and immersing themselves in cryptocurrency speculation, including Bitcoin.
They are doing that to prevent ordinary people like me from investing in cryptocurrencies and exchanging information.
They want to use cryptocurrency to monopolize and inherit all wealth and power.
Is the situation in the world where @chekohler lives similar?
As you argue, S-Ko's fiat currency is shit.
So, everyone clings to buying US dollars.
From my point of view, they already felt like an economic colony of the United States and China.
PS: What is mean yolo'ing?
I think you're being dramatic, they are not preventing anyone, as I stated in the post, there are compliant exchanges that are fine to work with and purchase from, many exchanges talk chances with their operations and governments just want their piece of this growing pie
I don't think it matters who the money goes to, if it goes to governments or VCs they are both rentseekers and if you want to pay them go ahead. If you just buy bitcoin take it off exchanges and hold it in cold storage you attack the rentseekers directly but people are too dumb to do that so I do and I benefit from it
Yolo'ing means taking risk without caring
I admit I used dramatic expressions because I'm not used to English.😅
By the way, if you knew the truth of the world I live in, you would agree with me.
Currently, all of my savings, accounts, and transactions are subject to state surveillance.
My phone calls and text messages, Twitter, Facebook, and SnS are also monitored.
Maybe if they find out I'm having these conversations with a foreigner like you, I could be jailed.
They watch me because of the fact that I can tell you their secrets.
The world I live in already has a communist economy like China. But, Currently, the state is acting outwardly as a capitalist system in order to receive US capital and technology.
You have to understand that it actually has a communist economy, but outwardly acts as a capitalist system.
Therefore, it is difficult for commoners like me to trust the claims and policies of the state.
So, I thought it was safer to store my fortune in bitcoins as you argue.
Surely you understand the characteristics of S-Kans well.
Thank you for advice! 😃
Good luck living in such a difficult place!
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I am glad meet to you! @cmplxty.leo!
Where are you from?
I am currently a slave living under pressure between capitalism and communism.🤣
I didn't know the authorities are so strict and how are they enforcing any of this? Can you share links of cases I can look at?
Dear @chekohler, Do you remember the fact that S-Kans are not active on blockchains including Hive?
This is because they are afraid that the fact that they are talking to foreigners like you will be found out by the state.
So, my current conversation with you is also dangerous.
I am sorry that I cannot provide you a link for my safety.
I want you to search for defamation, insult, and dissemination of false information in S-K.
https://peakd.com/hive-155820/@goldgrifin007/introduce-crazy-country-to-my-friend-joeyarnoldvn
I have to be more careful because I am currently a former criminal.😞
I think the game of Crypto Whack-a-mole is just getting started. Governments are really going to ramp this up over the next few years. I think (hope) that enough decentralized exchanges step up and continue to provide services in a relatively smart fashion.
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It's a bit silly to think you can't take down dex's they are not running P2P people are using them via centralised nodes so those nodes can be taken down IE infura and if you cut off USDT and USDC from these DEXs there's going to be a killer shot to liquidity
Governments are letting people do these things they can easily bring down a lot of it if they wanted to
You are right. Any individual dex can be taken down. Even many can be, but if enough adoption occurs, there is no way to stop a mob of dexes. Problem is how to get to that point. If decentralization becomes ubiquitous enough, the government can't win.
The president of Sri Lanka didn't think he would be deposed I'm sure :-)
Problem is whether we can get there or not. Probably not but one can hope and encourage :-)
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Hopefully it doesn’t mess up the hive and HBD pumps that the Koreans have been doing lol
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Doubt it, lol they not able to stop the kimchi spreads in bitcoin either, they love pumping and paying over and above, I can't confirm this but I assume the apps are reducing fees to trade and adding to spreads instead and people are just continuing to bid it up
The on and off bridges to free crypto is being tightened one by one.
I would say the opposite, for me, I'd love them to run all exchanges out of business, force liquidity to P2P markets and decentralising it even further, eliminating all these rentseekers market making and scalping fees
where are the best P2P markets?
Nigeria has the biggest one in the world, personally I use robosats and hodl hodl, but there are others like Paxful and localbitcoins. Shitcoin's don't really do much P2P volume, its more of a bitcoin thing.
Another great one is Bisq
Thanks, good to know!
That is why is important to follow the rules when you operate a crypto business like a trading exchange.