It was back in October of 2020 when the cryptocurrency industry was issued a notice by the regulatory authorities in South Korea. In the notice, the regulators intimated to the cryptocurrency exchanges that stricter regulations will be imposed on the cryptocurrency sector starting January of 2021.
The South Korean regulatory authorities also issued the guidelines for the new policies and regulations surrounding the new regulations. However, the regulatory authorities were very clear about the strictness and adherence of the policies.
The regulators announced that once the policies and regulations were imposed, any crypto-exchange not adhering to or breaching the policies would be met with extreme regulatory consequences.
Although the cryptocurrency sector remained quiet for some time after South Korean regulators’ notice, they started voicing their concerns towards the end of 2020. The cryptocurrency community demanded the regulators to give them some time so they could get used to the new regulations.
Showing a lot of cooperation and understanding towards the cryptocurrency sector, the regulators listened to their concerns. They then proceed with moving the implementation date to March of 2021. However, the cryptocurrency community wanted even more time to get used to the policies.
Therefore, the South Korean regulators announced that although the new policies would be implemented in March of 2021, they will not be enforced until September of 2021.
This meant that the South Korean regulators approved a six-month grace period for the cryptocurrency exchanges. During this time period, the cryptocurrency exchanges could get used to the policies and regulations. This would eventually help the cryptocurrency exchanges to operate in South Korea without any problems or regulatory violations.
However, as September 24 approaches and the exchanges are required to proceed with registering at the regulators, the crypto-community is yet again requesting a grace period.
The sources reveal that the cryptocurrency sector in South Korea has claimed that it would be impossible for them to meet the requirements set by the regulators until September 24, 2021.
Therefore, they have requested that the regulatory authority must consider the request and grant six more months as a grace period. However, this time it looks that the regulators are not going to listen to their requests.
According to the regulatory authorities, no cryptocurrency trading platform currently has all the paperwork and documentation ready, which is required from them to operate in the country.
The regulators have revealed that so far, only a few cryptocurrency trading firms have the ISMS, which is a certification for the Information Security Management System.
The new policy required crypto exchanges to open up accounts with banks with their true identities. Unfortunately, not a single crypto exchange currently has that in place. The regulatory authority has audited a total of 33 exchanges and none of them fall into the operational boundaries.