After the 'market crash' phenomenon involving the popular cryptocurrency, Terra Luna, which rocked the market recently, South Korea is seen to be stricter in crypto legislation in their country.
South Korea is reportedly planning to block domestic access to foreign cryptocurrency exchanges that do not have the proper registration process to operate in the country. This causes South Korea to have the right to launch an investigation against the companies in question.
The Financial Commission's intelligence unit has reported 16 foreign crypto businesses to national investigative bodies and asked other agencies to block access to the firms' local websites.
Meanwhile, the listed companies are;
KuCoin
Mexico
Phemex
XT.com
Bitrue, ZB.com
Bitglobal
CoinW
CoinEX
AAX
ZoomEX
Poloniex
BTCEX
BTC
DigiFinex
Pionex.
Additionally, officials intend to report violations to the company's home country and will seek to isolate it from the rest of the local cryptocurrency sector if the company fails to obtain the necessary permits.
According to the statement, companies that operate unregistered or illegal businesses will face up to five years in prison or a fine of up to 50 million won ($37,000). They are also prohibited from registering a company within a certain period of time.
Last year, South Korea mandated that cryptocurrency platforms must receive Information Security Management system certification.
Since then, more than half of the country's crypto exchanges have ceased operations. Currently, 35 virtual asset service providers are registered as legal platforms in the country.
