Small Cryptocurrency Exchange Customers in South Korea Fear for Their Funds
The year 2020 has observed the tiny cryptocurrency industry grow into an entire giant and even now, it is only growing bigger. No matter the product, service, or feature, the industry has been gaining growth and a lot of momentum.
When it comes to the year 2021, things have become even more fast-paced for the entire cryptocurrency industry. The adoption level among different sectors and countries has been at an all-time high. The only thing that was ever missing for the cryptocurrency industry in the year 2020 was mainstream adoption.
That was the only milestone that the cryptocurrency industry wanted to achieve because that was going to put the industry onto the map of the successful technologies in the entire world.
At present, there are more than 106 million users that belong to the cryptocurrency community and this figure is rising every passing second. This is the reason why countries and mainstream institutes are demanding to make the cryptocurrency space more regulated and adherent to the policies.
There are countries that didn’t waste a single second and welcomed the industry with open hands. Some of these countries include China, Japan, Russia, Georgia, Switzerland, and some others.
South Korea is also a country that is among the ones that welcomed the cryptocurrency industry with open arms. The country is even taking a lot of steps and measurements to make professions and jobs out of the cryptocurrency and blockchain sector.
However, the country hasn’t become too soft or flexible when it comes to regulatory adherence and is doing the exact opposite of being flexible. Just recently, the South Korean regulatory authorities introduced even stricter amendments to the Anti-Money Laundering policy.
In order to achieve the highest level of adherence for the regulatory adherence, the regulatory authorities will now be policing strict measures that would also involve bringing the banking operations under control.
It has been reported that the new regulatory amendments will be implemented in the cryptocurrency sector starting September of 2021. However, amid this situation, fraudsters and small cryptocurrency exchanges have become really active. There are several users that have reported that their funds from the small cryptocurrency exchanges have started going missing.
One of the local media channels from South Korea recently made an alarming revelation about the unregulated crypto-entities in the country. The report shared by the channel shows that there are currently more than 100 platforms that are 100% unregulated.
Although the entire cryptocurrency industry is currently booming, it is speculated that once the new regulatory policies kick in, only a handful of exchanges will be able to survive the environment.
According to the new regulations, if an exchange is found not adhering to the regulatory policies, they will be subjected to punishments and up to 5 years of jail time is one of them.