Except for the largest four, all cryptocurrency exchanges in South Korea may not be able to meet the bank account requirements needed to maintain business. Many South Korean crypto exchanges are considering suing the government and financial authorities, claiming that the country’s encryption laws are unconstitutional.

  • According to a report by Korean Business on Monday, many exchanges are currently considering lawsuits against the government and financial authorities, accusing the country’s encryption laws of unconstitutional.
  • The revised “Specific Financial Transaction Information Reporting and Use Law” requires cryptocurrency exchanges to submit documents before September 24 to prove that they have real-name accounts issued by banks.
  • However, Korean banks are reluctant to provide real-name services to cryptocurrency exchanges due to money laundering issues.
  • Several banks, including NH Bank and Shinhan Bank, are conducting risk assessments on the country’s largest cryptocurrency exchange: Upbit, Bithumb, Coinone, and Korbit.

  • However, no bank is willing to cooperate with smaller cryptocurrency exchanges. Therefore, it is expected that a large number of exchanges will be forced to close.
  • An exchange told the publication:

Nowadays, banks refuse to start their cryptocurrency exchange verification process without clear reasons, and most exchanges have no chance to prove themselves. The Financial Services Commission needs to get involved immediately.

What do you think of the Korean exchange suing the government for bank account requirements? Let us know in the comments section below.

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Bank account, South Korean Bitcoin, South Korean cryptocurrency, South Korean cryptocurrency exchange, South Korean cryptocurrency, South Korean government, lawsuit, real-name account, South Korea, prosecution, unconstitutional

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