South Korean MP Says Government “Don’t Let Monopoly Crypto Exchanges Rise”

A lawmaker for South Korea’s ruling party has asked the government to block Upbit, the country’s leading cryptocurrency exchange and currently the exclusive cryptocurrency exchange there. South Korean lawmakers also stressed that Seoul should ensure the existence of “at least three or four” rival stock exchanges.

Upbit becomes the exclusive cryptocurrency exchange.

As already reported, Upbit is so far the only exchange in the country that has made an official application for approval as a trading platform operator after signing a contract with neobank K. – Bank. The latter company has built a successful and lucrative partnership with Upbit over the past few months.

But despite industry insiders and members of the local press, Upbit’s three biggest rivals – Korbit, Bithumb, and Coinone – may be ready to file their documents with the regulator before the end of this week. And so far, Upbit remains the only monitored exchange and remains open after the September 24th deadline.

South Korean MP Says Government: “Don’t Let Monopoly Crypto Exchange Rise.”

According to Asia Kyungjae, Noh Woong-race, the Democratic Party Congressman for Seoul’s affluent Mapo district and a harsh critic of President Moon Jae-in’s government, if “at least” one allows the exchange of this transaction will benefit the customer.

Noh was cited as a warning:

 “When a monopoly market arises, a crypto exchange can list or remove coins at will, or increase crypto trading fees at will.”

The MP added that the chairman of the Fair Trade Commission, Joh Sung-Wook, “said he would look into the issue of proprietary cryptocurrency exchanges.”

Government policy has led to the emergence of proprietary cryptocurrency exchanges.

Meanwhile, nine rival South Korean crypto exchanges, including Huobi Korea, have issued a joint statement pleading with the government not to eliminate the sector.

News1 reported that the exchanges reiterated Noh’s warning, with Hanbitco CEO and Korea Blockchain Association Exchange Committee Chairman Kim Sung-a commenting:

 “The size of the crypto industry is growing worldwide. But in South Korea, things are moving in the direction of creating a deviating monopoly. This is the wrong direction. “

Representatives of more extensive exchanges such as ProBit, Flybit, and Foblegate also took part.

Exchange officials complain that the government and the Financial Services Regulatory Commission (FSC) are adopting an “irresponsible” and “inflexible” approach that ultimately causes harm to businesses and customers.

The main crux of the exchanges mentioned above is the problem of bank contracts. The FSC has emphasized that all businesses offer KRW-to-crypto and crypto-to-fiat trading partners with local banks, with the latter reducing the financial risk burden.

The banks voted with their feet, with most rejecting the idea of ​​working with exchanges on these terms.

An (unnamed) stock exchange official was quoted as saying:

 “Risk assessment should only be the responsibility of an exchange, not a bank. But the tax authorities have shifted the burden to the banks. “

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