Korean FTC to Order 12 Exchanges to Revise User Contract

Exchanges will have to review their users' agreements and make changes to them
05 April 2018   388

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.

Coinbase to Issue New Statement

As reported, company says it was wrong about SEC approval of acquisitions of Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC
18 July 2018   119

Vice President of Communications of Coinbase Rachel Horwitz denied the information that the company received approval from the Securities and Exchange Commission of the United States for a deal to buy brokerage companies. This is reported by Bloomberg.

It is not correct to say that the SEC and FINRA approved Coinbase’s purchase of Keystone because SEC was not involved in the approval process. The SEC’s approval is not required for the change of control application. Coinbase has discussed aspects of its proposed operations, including the acquisition of the Keystone Entity, on an informal basis with several members of SEC staff.

Rachel Horwitz

Vice President of Communications, Coinbase

On Monday, a spokesman for Coinbase said that the company received permission from the SEC and the Agency for Regulation of Financial Institutions (FINRA) to purchase Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC.

However, despite the refutation from Rachel Horwitz, Coinbase still intends to obtain a license to carry out brokerage activities.