Tightened surveillance on crypto exchanges threatened with closure this week

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The Korea Financial Intelligence Unit said on Sunday it was closely examining cryptocurrency exchanges on the verge of closure. The unit reports to the Financial Services Commission, the country’s financial regulator.

The regulator, in cooperation with police and financial institutions, aims to prevent these exchanges from drifting away with users’ money parked in their accounts.

Any exchanges that fail to register with the FSC by September 24 must notify users by Friday that they are being forced to shut down.

Of the 63 exchanges operating in the country, 24 remain uncertified, officials said. These include Banantok, Docoin and Cocofx. Users of uncertified exchanges should withdraw their deposits before closing or risking losing them, market insiders have said.

Upbit, the country’s largest crypto exchange, is still under review by the FSC with help from the police and the Korea Internet and Security Agency, a public institution that oversees the protection of information on the Internet.

Bithumb, Coinone, and Korbit must then go through the review process.

South Korea now requires stock exchanges to obtain certification of their information security management systems. This ensures that procedures are in place to manage customer data and prevent security breaches.

Under the guidelines, financial institutions such as banks must prohibit transfers of money to accounts from uncertified stock exchanges and must report any suspicious transactions to financial authorities.

By Byun Hye-jin ([email protected])

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