The Fair Trade Commission of the Republic of Korea (FTC) has obliged 12 local crypto exchanges to terminate contracts with customers that users agreed during registration at trading sides. This is reported by Yonhap.
According to representatives of the FTC, the so-called merger agreements, in which the weak party either agrees to all conditions, or refuses to cooperate, may have a negative impact on the safety of users. Such contracts are often concluded with leasing, insurance, mortgages, etc., but they do not provide the necessary protection for clients of crypto-exchange trading platforms.
In particular, existing contracts restrict customers in withdrawing funds from deposits. In addition, methods that use exchanges, forcing users to incur financial losses at the time of the end of cooperation with the exchange.
Thus, the trading platforms will have to revise their user agreements and in make changes in it.
In March, South Korean regulators announced an audit of the activities of banks working with crypto exchanges.