September 19, 2021

11 cryptocurrency exchanges to be closed in South Korea

The Financial Services Commission (FSC), during the audit of trading platforms, found fraudulent schemes.

11 cryptocurrency exchanges in South Korea to be discontinuedwork after audit by the Financial Services Commission (FSC), according to the Korea Herald. According to the publication, fraudulent schemes have been identified in the trading platforms. At the moment, the list of exchanges that are subject to closure remains unknown.

Over the past three weeks, there have already been three South Koreancrypto exchanges announced the termination of work. In particular, Darlbit completely stopped trading on 15 July. A month before the closure of work, the exchange stopped accepting and withdrawing funds. CPDAX warned customers to close on September 1st. Site users must withdraw their funds by August 31st. The suspension was also announced by the Bitsonic exchange. The site representatives explained this by updating the internal systems.

On July 26, it became known that South Korea will be able toconfiscate cryptocurrency. South Korean regulators have proposed amendments to the legislation in order to be able to confiscate cryptocurrency from citizens who evade taxes on transactions with digital assets.

In May, the South Korean authorities approved a plan tothe introduction of a 20 percent tax on income from cryptocurrency trading. This will affect citizens who earned more than 2.5 million won ($ 2 thousand) a year with the help of digital money. Income below this amount is not taxed. The new rules will come into force on October 1, 2021.