Korean regulators have reportedly shut down 11 crypto exchanges

South Korea’s main monetary regulator, the Financial Services Commission, is reportedly planning to shut down dozens of native cryptocurrency exchanges on fraud allegations.

The FSC will droop operations of a minimum of 11 medium-sized cryptocurrency exchanges in South Korea for allegedly unlawful actions and collective account fraud, native information company The Korea Herald reported on Sunday. The publication cites nameless business sources who declare the names of the exchanges have not but been disclosed.

The sources argued that the crypto exchanges in query couldn’t be accepted by the FSC to function. The report additionally notes that authorities plan to introduce stricter laws for smaller cryptocurrency exchanges in South Korea.

The information of the alleged shutdown comes amid a current shutdown of a number of smaller South Korean crypto exchanges. The native cryptocurrency alternate Bitsonic introduced on its official Telegram channel on Friday that it will likely be quickly closed, citing “internal and external issues”.

Another native cryptocurrency alternate, CPDAX, additionally introduced that it might utterly stop operations on September 1.

The FSC didn’t instantly reply to Cointelegraph’s request for remark.

(*11*)Related: (*11*)South Korea Takes Action Against Unregistered Crypto Exchanges

South Korean crypto exchanges have just lately come beneath elevated regulatory scrutiny as authorities requested native digital asset service suppliers to register their enterprise and arrange trading accounts and experiences for actual names by September. Small and medium-sized crypto exchanges particularly have reportedly struggled to acquire licenses from the related authorities, in contrast to massive crypto exchanges like Upbit. , Bithumb, Coinone and Korbit.

However, the bigger cryptocurrency exchanges in South Korea have additionally confronted regulatory points just lately. The Seoul Metropolitan Police Agency resumed its investigation right into a suspected fraud case involving the previous chairman of Bithumb, the most important cryptocurrency alternate in South Korea, on Monday, in line with Yonhap News.