Domestic and foreign crypto exchanges in South Korea are expected to register with the authorities, and failure to do so by September 24 will attract severe penalties or even jail time.
South Korea’s government said today that cryptocurrency exchanges that do not register voluntarily with the country’s authorities by September 24 would face penalties.
According to reports, this new set of laws will apply to both domestic and international exchanges operating in Korean markets.
This includes any exchange that supports the Korean language, markets to Koreans, or accepts payments in the Korean won, according to the press release.
Exchanges that continue to operate without registering face a five-year prison sentence or a fine of up to 50 million Won ($43,500 USD) under the Specific Financial Information Act.
Unregistered exchanges’ websites may also be blocked in the future, according to sources.
To prevent any penalties, Korean users should check on September 25 to determine if their exchange is registered. Sales made through such exchanges would be prohibited in the country as of that day.
This is the most recent in a long line of cryptocurrency-related rules from around the world. The European Union unveiled intentions earlier this week to crack down on bitcoin sending and receiving in the hopes of preventing money laundering.
The SEC Chairman stated that bitcoin is subject to the same laws and regulations that apply to security-based swaps in the United States, and that additional regulation may be forthcoming.
This week, the President’s Working Group on Financial Markets and other US agencies met to discuss the usage of stablecoins and their hazards. In the following months, regulatory suggestions are likely.