The South Korean Financial Services Commission is looking into 16 cryptocurrency exchanges to see if they broke the Specific Financial Information Act. The FSC says that these exchanges were running like businesses that didn’t tell anyone what they were doing.
Also, they tried hard to sell things on their websites by offering tempting deals, but they didn’t tell the government of South Korea about this.
The rules for the South Korea Special Act are real
The Special Act says that any business with virtual assets must follow the Financial Intelligence Unit (FIU) rules. Getting the information security management system (ISMS) accreditation is part of this step.
If a company doesn’t send in the required reports, it could go to prison for up to five years or pay a fine of up to 50 million won, whichever is higher. Also, for the next five years, the company won’t be able to do business with cryptocurrencies. Companies in the US and everywhere else must follow these rules.
The FIU also has rules about selling things inside the country. The FIU told all exchanges to write how they worked in July of the year before. But it was recently found that 16 of the above cryptocurrency exchange businesses broke the law. One person from the FIU told the local news magazine News 1 the following:
Giving credit card companies more work to do
During their investigation, the Financial Intelligence Unit (FIU) discovered that these cryptocurrency exchanges let customers pay with credit cards. On the other hand, the Special Act says that this facility can only be used for deals that are written down. The Financial Intelligence Unit is now working with credit card companies to ensure people can’t use their cards to buy cryptocurrency. The agency also told them to stop working with operators who haven’t told them who they are.
Bhushan is interested in FinTech and has a natural knack for understanding how financial markets work. He is always learning new things and keeps going by showing what he has learned to other people. He likes to read books that keep him on the edge of his seat in his free time. He also likes to give cooking a try.
The owner of a cryptocurrency exchange was given a 10-year prison sentence
This is because he was part of a global plan to steal millions of dollars from people in the United States, “said the DOJ.
Rossen G. Iossifov got a sentence “for conspiracy to commit a Racketeer Influenced and Corrupt Organizations Act (RICO) crime and conspiracy to launder money.” Because he had been found guilty in September of the year before.
The person who ran a scam that cost Americans millions of dollars and owned a cryptocurrency exchange got ten years in prison. The first problem is that decentralised cryptocurrency exchange is hard to use.
Complexity
Users of decentralised exchanges must remember the keys and passwords for their wallets. If they don’t, they’ll lose all of their assets. Instead of making the process easier and more user-friendly as centralised exchanges do, these exchanges require the user to learn the platform and process before using them.
The lack of use of cash
You can’t trade fiat money for digital money on a decentralised exchange. Customers who don’t have cryptocurrencies can’t trade fiat money for digital money, which makes them less useful. You are able to invest on bitcoinxt software, which is the platform with the highest level of credibility.
Liquidity difficulties
Most cryptocurrency trades happen on exchanges run by a small group of people. Because of this, it’s likely that most cryptocurrency trades take place on these exchanges. When the number of trades is low on a decentralised exchange, it can be hard to find buyers and sellers because there may not be enough liquidity.
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