South Korea’s regulatory chief has reaffirmed his calls for stronger crypto sector enforcement, but an industry group has warned that there could be billions in damages if crypto-only trading platforms are allowed to fail.
According Seoul Finance the new Chairman of Financial Services Commission was announced that he would “strengthen monitoring of crypto exchanges” in order to ensure customers return their deposits on time and that they follow other regulatory protocols.
After meeting with eight heads of financial and policy institutions in Seoul, Koh spoke to reporters about crypto.
Koh was quoted saying:
“The Financial Intelligence Unit has been expanded and an inspection division for cryptoassets has been established. We will be checking with the FIU to make sure we are on the right path.
The industry is trying to fight against the regulatory policies that have led to four out of the eight South Korean crypto exchanges closing or limiting their operations to crypto-only customers in the last few days. News1 quoted, the head of the Korea Blockchain Enterprise Promotion Association, as saying that he was urging lawmakers to support a private member’s bill in parliament. This would allow crypto exchanges without bank affiliations to open the doors to fiat KRW trading.
According to the association, it stated that regulators and the government had ignored the will “National Assembly, industry experts, and the media” and allowed only “large corporations” access to crypto exchange services.
It stated that it was a bitter pill to swallow for the 39 medium-sized exchanges that had invested billions of KRW in various systems and obtained information security management system certification. However, they were told they could switch to crypto-only businesses.
The trading figures have shrunk at the four largest exchanges within days of last week’s regulatory deadline.
The association warned that allowing these exchanges go out of business could result in the loss of USD 8.4 billion worth of customer funds.
Japan’s regulators were urged to police and limit peer-to-peer (P2P), crypto transactions while they are in the East.
According to Nikkei legal experts, “direct [crypto] transaction between individuals have emerged a hotbed for crime.”
According to the media outlet, transactions are monitored by the regulatory Financial Services Agency through exchanges but not mainstream interpersonal transactions.
Experts called for crypto fraud “deterrent” and said that a “public-private sector collaboration was required to “create, improve and share” the “technical capabilities” of tracking software.
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