South Korean crypto exchanges ready for litigation

South Korean crypto exchanges are ready for litigation and are preparing lawsuits to sue the government or defy the government in the Constitutional Court if they missed deadlines in September and had to close.

South Korean crypto exchanges ready for litigation

The new regulations for crypto exchanges that have come into effect will come into effect on September 24th. So far, however, none of the 60 crypto exchanges nationwide that meet all of the criteria required to obtain an operating license are active.

Even the country’s “Big Four” exchanges – Upbit, Korbit, Bithumb, and Coinone – must continue to hedge essential banking transactions while regulation by the Financial Services Commission (FSC) continues. Perform spot checks on all 60 Korean trading platforms.

But while the exchanges raise hopes that the FSC and the government will soften their stance on the cut-off date, anger in the crypto sector grows with harsh adoption across the board on September 24th unless the government gives in.

According to Yonhap and Dailian, the stock exchanges’ persecutors are increasingly angry about what they see as “unreasonable demands” and the supervisory authority’s “preference” for the four major stock exchanges.

And given these strict regulations and unreasonable requirements, Korean cryptocurrency exchanges are ready for a legal battle against the risk of being closed on September 24th.

While the exchanges are currently hoping, through direct appeal, to change the government and FSC’s minds about the rigors of the regulations, the media claim that if they are actually “forced to close,” they will not remain silent – and prepare for litigation are responsible for their survival and asking for unfair treatment.

Korean banks do not want to take responsibility for crypto-related risks

Meanwhile, South Korean banks have given government deals another boost – by telling regulators that they don’t want to be held accountable for risk assessments on cryptocurrency exchanges.

Banks have been told to conduct risk assessments on trading platforms to assess whether or not the exchange and its senior management are the right clients for their clients. Without a banking contract, exchanges would not be able to conduct anonymous, real-name banking. And the government has insisted that exchanges that operate without a banking partner be forced to close.

As such, banks have the powers of judges, juries and regulators in this area. The problem seems to be that they don’t want this responsibility – and are calling on regulators to help out with allegations of hacking or fraud.

According to Seoul Shinmun, commercial banks have “asked them not to take responsibility,” even when the money laundering occurred on a stock exchange.

The media added that the uncertainty is also worrying the government and senior financial sector executives, who are unsure whether they should continue to establish a grant system with standards that can inspire speculation. “

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