South Korea Regulator Cannot Shut Down Cryptocurrency Exchanges

South Korea Regulator Cannot Shut Down Cryptocurrency Exchanges

KFTC, which is investigating e-commerce law violations that 13 of the country’s major crypto exchanges have done, stated it had no authority to shut down the exchanges. The chairman of the commission specifically stated that it would be impossible for KFTC to close the accused cryptocurrency exchanges before the government can come in to regulate the market.

According to the country’s local media, exchanges like Coinone, Korbit, and Bitumb are amongst the 13 major exchanges KFTC is investigating for South Korean Electronic Commerce Law violations.

Kim disagreed with Park Sang-ki, Korea’s Justice Minister who stated that legislation should be made that bans virtual currency transactions trading. Kim responded that ministers have no backing from any legal provisions or other laws that enable them to close or ban cryptocurrency exchanges.

Voluntary reforms instead of extreme measures

Kim alluded that several illegal activities have been unearthed even as the investigation continues.

To rectify the situation, he said exchanges that were found to have violated the law will be later notified of the specific arrangements to make. Kim stated that FTC will encourage voluntary reforms for the first 6 months but if the problem expounds it can further advocate for direct legislative amendments reforms.

FSC (Financial Services Commission) on its part advised that the government should either close exchanges committing illegal acts or shut down virtual currency trading. In this way, the regulator hopes it will cab illegal activities in the cryptocurrency industry.