On December 13, the South Korean government held an urgent meeting on the issue of the crypto-currency market. Among the decisions taken was "the proper regulation of the exchange of crypto-currencies as full-fledged providers of financial services". One of the factors that forced legislators to take emergency measures was the appearance on the Korean market of fraudulent exchanges. This is written by Cointelegraph.
Last week, local authorities and the bitcoin community identified several such exchanges. One of them was the BitKRX exchange, which uses the KRX ticker, which belongs to the Korean Stock Exchange.
BitKRX was promoted as a branch of KRX, and on its website it was said that the exchange is regulated and affiliated with KRX enterprise.
One of South Korea's largest news portals, Chosun, reports that local authorities have begun to fight with exchanges that use inaccurate information to promote them. So, it became known that several South Korean exchanges were not registered, but conducted their activities as full-fledged market participants.
A small group of individuals that are not qualified and experienced enough to run high-traffic and large-scale platforms are running cryptocurrency exchanges in the local market. Consequently, traders are not able to properly execute buy and sell orders in a timely manner, causing major losses and difficulties for investors. Strict regulation of the market by the South Korean market will further stabilize the local cryptocurrency market.
South Korean cryptocurrency community member
According to the results of the meeting held in the middle of the month local legislators decided to toughen the requirements for the exchange of crypto-currencies, and to restrict access to this market for foreigners and minors.