Ever since the advent of cryptocurrencies, South Korea had turned out to be one of the most supportive countries towards cryptocurrencies. The country adopted cryptocurrencies on a large scale and it became a hub for the cryptocurrency sector.
However, since the beginning of 2020, South Korea has gotten extremely strict against cryptocurrency firms and exchanges in the country. The country has reportedly become very strict and firm when it comes to the implementation of regulations over cryptocurrency exchanges.
Prior to the implementation of the taxation laws on cryptocurrency exchanges, South Korean regulators are now paying close attention to the regulatory practices. The country wants more intervention from the local police authorities in regards to monitoring cryptocurrency activities at the cryptocurrency exchanges.
Now, the financial regulator from South Korea is getting serious and keen to keep a very close eye on and monitoring on the cryptocurrency industry. The regulator has recently announced that it will be carrying out an inspection of overall cryptocurrency exchanges in the country.
As per reports, the regulator is to have around 60 cryptocurrency exchanges in South Korea inspected. The regulator has also revealed that the inspection will be conducted by inspectors from the independent IT sector and the police authorities.
Just recently, the cryptocurrency community heavily criticized the South Korean Capital Seoul for its involvement in cryptocurrencies. The crypto-community criticized that the capital was neglecting the sector of domestic cryptocurrencies.
Therefore, the capital went ahead and gave full authority and command of dealing with cryptocurrencies and digital assets to the Financial Services Commission (FSC). The Financial Services Commission is one of the top financial regulators in South Korea.
Following its appointment as the leading financial regulator for cryptocurrencies, the regulator has dealt with the matter with great zeal. Right after the appointment, the Financial Services Commission summoned several cryptocurrency exchanges to its headquarters for discussions.
The reports suggest that the regulator had summoned 20 cryptocurrency exchanges that are currently leading the cryptocurrency market in South Korea. There have been three different occasions when the regulator summoned all 20 major cryptocurrency exchanges to its headquarters.
According to reports, the cryptocurrency exchanges summoned by the regulator either had the ISMS data protection certification on them or were in the process of having it.
It was just a month back when it was reported that the Financial Services Commission had carried out a check and inspection on an exchange. It was considered to be one of the largest cryptocurrency exchanges in the Seoul Capital.
However, now the regulator is set to take extreme measures when it comes to the inspection of cryptocurrency exchanges. It is mainly because of the recent reports where small cryptocurrency exchanges were found not submitting requests for permits.