Korean Authority Slaps Exchanges With Licensing Requirements

The South Korean government is conducting on-site inspections of crypto exchanges following the release of its emergency measures for cryptocurrency regulation. The regulators have also notified the country’s largest exchanges that they are subject to the Information Security Management System certification requirements.

Also read: South Korea Clarifies Position After Reports of Possible Ban on All Crypto Transactions

On-Site Inspections of 13 Exchanges
The South Korean Office for Government Policy Coordination and Prime Minister’s Secretariat issued an announcement on Wednesday to follow up on the emergency cryptocurrency measures unveiled last week.

On December 20, the Korean Fair Trade Commission (FTC) began carrying out “on-site inspections for violations of consumer laws, such as electronic commerce laws and contract laws, at virtual currency exchanges for three days,” the Office wrote.

The “target of the investigation,” the government elaborated, is “the 13 major virtual currency exchanges operating in Korea and reporting as telecom vendors under the E-Commerce Act.” They include Bithumb, Coinone, and Korbit. Among other factors, the Commission will “check whether there is any unfairness among the terms and conditions used by the business operators” and take action in accordance with relevant laws and regulations.

Furthermore, the government stated that their previous inspections of crypto exchanges revealed