Crypto Exchanges in South Korea to be Banned from Executing Transactions

It has been recently reported that the financial regulators in South Korea are planning to ban the local cryptocurrency exchanges from carrying out transactions without recording them. The Financial Services Commission outlined a precondition that the exchanges must be able to meet if they need to continue their operations in the country.

South Korea Banning Local Crypto Exchanges

The recent precondition was outlined by the Financial Services Commission of the country at a meeting that was held last week and was attended by around 20 crypto exchanges based in South Korea. 

Talking about the rule, it will be banning the cross-trading practice of carrying out the buy and sell orders for the same assets at the exact same price without having the transaction recorded on its database.

In order to keep making profits from cross-trading, exchanges are required to open businesses that will be dedicated to the conversion of crypto to fiat. 

However, the crypto exchanges obviously were not in the favour of the recent rule as it would put them out of this business as running these businesses is quite expensive.

In addition to this, it is believed by the FSC that banning cross-trading would make sure that the exchanges are not manipulating prices and that the operators are not going to receive any information before their clients.

Deadline To Apply For License

Earlier, there have been reports of a complaint by the crypto exchanges regarding the expensive licenses provided by these bodies. In addition to this, the report revealed that only some exchanges that are cash-rich were able to acquire those licenses.

They said that only wealthier exchanges can afford to meet the stringent requirements of the FSC.

Well, let there be any kind of situation, the crypto exchanges will have to apply for a license before September 24 and if they fail to do so, they will soon be out of business.