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Crypto exchanges operating in the country that do not register by September 24 face fines or even imprisonment.
The South Korean government announced today that cryptocurrency exchanges will face penalties if they do not register voluntarily with the country’s authorities by September 24.
This new set of regulations will reportedly affect both exchanges based in South Korea and foreign exchanges that operate in Korean markets. According to the press release, this includes any exchange where the Korean language is supported, marketing is aimed at Koreans, or payments can be made in Korean won.
The punishment for continuing to operate without registration under the Specific Financial Information Act is up to five years in prison or a fine of up to 50 million Won — roughly $43,500 USD. According to sources, there are plans to block websites associated with unregistered exchanges in the future as well.
To avoid any penalties, Korean users should check on September 25 to see if the exchange they are using is registered. Sales made through such exchanges would be illegal within the country as of that date.
This announcement is the latest in a long line of cryptocurrency regulations around the world. Earlier this week, the European Union announced plans to restrict cryptocurrency sending and receiving in the hopes of limiting money laundering. The SEC Chairman stated that cryptocurrency is subject to the rules and regulations of security-based swaps in the United States, and that additional regulation may be forthcoming. This week also saw a meeting of the President’s Working Group on Financial Markets and other US agencies to discuss the use and risks of stablecoins. The regulatory recommendations are expected in the coming months.