South Korean crypto traders expect losses of $ 2.6 billion

[ad_1]

South Korea’s Financial Services Commission regulatory agency is toughening rules for cryptocurrency exchanges, and the move could cost traders $ 2.6 billion or more, the Financial Times reported (FT ).

The regulator issued a press release on September 6 stating that staff members had held an online meeting with Virtual Asset Service Providers, or VASPs, to discuss requirements for a deadline of 24 September to register their businesses with the government.

For VASPs who plan to operate a virtual asset trading platform but do not plan to offer [Korean currency]-based or other fiat-based exchange services, authorities advised them to end their fiat-based exchange services without delay before the Sept. 24 registration deadline, the statement said. When filing their registration report, these VASPs must submit a document confirming the termination of their fiat currency based exchange services.

The statement continued: for those VASPs who are unable to meet the requirements and who go out of business, authorities have advised them to take measures to minimize damage to service users by issuing notices. of cessation of activity at least seven days before (until September 17). ) until the scheduled termination date, informing users of the withdrawal procedures available up to at least 30 days after termination of the services and deleting users’ personal information in accordance with applicable rules.

About 40 of South Korea’s 60 cryptocurrency service providers are likely to shut down, FT reported, citing industry insiders and regulators.

The move could force the closure of 42 cryptocurrencies called kimchi coins traded on local exchanges and denominated in Korean won, according to FT, who attributed the forecast to Kim Hyoung-joong, director of the Cryptocurrency Research Center. from the University of Korea.

A situation similar to a bank run is expected as the deadline approaches, as investors cannot cash in their holdings of alt-coins listed only on small exchanges, Lee Chul-yi, director of Foblgate, told FT. , a medium-sized crypto exchange. They will suddenly find themselves poor. I wonder if the regulators can handle the side effects.

Huge losses for investors are expected with the suspension of trading and the freezing of assets in many small exchanges, as protecting clients is unlikely to be the priority for those exchanges facing an impending shutdown, Cho Yeon said. haeng, president of the Korea Finance Consumer Federation, by FT.

The Korean won is third behind the US dollar and the euro in the ranking of currencies used for cryptocurrency trading, according to the report.

——————————

NEW PYMNTS DATA: TODAY’S SELF-SERVICE PURCHASING JOURNEY – SEPTEMBER 2021

By the way: 80% of consumers want to use non-traditional payment options like self-service, but only 35% were able to use them for their most recent purchases. Today’s Self-Service Shopping Journey, a collaboration between PYMNTS and Toshiba, analyzes over 2,500 responses to find out how merchants can address uptime and perception issues to meet the demand for free kiosks -service.

[ad_2]