South Korea crypto regulations on crypto exchanges

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2021 will always be a year to be remembered in the crypto space lots of FUD from influential crypto investors, renewable energy for mining bitcoin, china's banning, and lots more hitting the market making both investors and traders losing faith in their invested portfolios.

Crypto exchanges in South Korea have been faced with lots of new regulations which is making the environment kind of unfriendly for these exchanges controversial rules have been passed over the year stating all crypto-related exchanges could likely be shut down in September 2021 it was said by Eun Sung-soo, head of South Korea's chief financial services regulator, during a National assembly policy committee on April 22.

There are an estimated 200 cryptocurrency exchanges in the country,” he added. “But if the current situation continues then all of them could be shut down.”

Stating customers need to be protected from scammers who promote laundry service in other to avoid users being victims to such activities exchanges are to comply with the newly amended policy and are to abide by the Financial Transactions Reporting Act (FTRA).

**On June 17 new regulations for all crypto exchanges having their exchange native token are prohibited from handling any token or asset issued by themselves.

Exchange tokens are tokens issued by cryptocurrency exchanges used by traders to reduce transaction fees holders also enjoy benefits like regular token burn and adding liquidity.

"Stating most crypto exchange tokens don't operate on proprietary blockchain"

What use is decentralization if there's no one to make rules? i guess that's why it's referred to as decentralization, not a one man's self-governance chain it needs a collective agreement, although these new regulations could cause lots of negative effects and reduce crypto adoption if such regulations are introduced regularly making it hard for crypto users to adopt these new policies.

Information source
https://cointelegraph.com/news/south-korean-crypto-exchanges-banned-from-handling-coins-they-issued-themselves/amp?__twitter_impression=true

https://www.coindesk.com/south-koreas-top-financial-regulator-suggests-all-crypto-exchanges-could-be-shut-down

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