All 60 South Korean crypto exchanges will be inspected by the country’s financial regulator, the Financial Services Commission (FSC), as part of its efforts to radically step up its monitoring of the crypto industry.
Seoul, the nation’s capital, has handed almost all control over the industry to the regulating body after being accused of negligence with regard to its domestic crypto industry.
In an apparent response filled with zeal, the commission has already summoned 30 leading exchanges in its headquarters on three varying occasions. These crypto companies include those who have already obtained or are still in the process of obtaining the required Information Security Management System (ISMS) data protection certification for their continued operation after September 24.
After this date, exchanges that are without ISMS, banking contracts, and other requirements will be forced to shut down and halt their operations.
FSC working hard
Different media outlets in South Korea have reported that the FSC already had its due diligence work done, courtesy of a week-long on-the-spot check at the biggest exchanges in Seoul.
But now, as it turns out, the regulatory body is taking things a step higher as smaller exchanges seemed to have no intention of complying with regulations put in place, such as applying for operating permits started to close, leaving investors disconnected with their funds.
The commission is also motivated to work even more as there are fears some owners of exchanges might decide to declare bankruptcy on the eve of September 24 to save them from the need to return fiat and tokens to investors.
In response, the FSC will now subject all of the country’s crypto exchanges to on-the-spot inspection.
FSC won’t be working alone, as it has teamed up with other government ministries and state-owned infotech companies as part of its efforts.
Moreover, the commission has also recruited independent private-sector IT professionals to work with inspectors on their searches.
Image courtesy of Cointelegraph News/YouTube