South Korea warns of fake cryptocurrency exchanges

The government and the governing financial authorities in South Korea warned investors about the emergence of fraudulent cryptocurrency exchanges.

December 13, the South Korean government was assembled a task force consisting of the Ministry of strategy and Finance, financial services Commission, the Ministry of justice, the Commission on fair trade and the Commission for financial supervision. The group held an emergency meeting to discuss the status of South Korean cryptocurrency market, as well as developed the rules for business and investors. Special attention was paid to two of the four proposed rules:

  • To ban cryptocurrency trading to foreigners and minors.

  • Regulation of cryptocurrency exchanges must be legitimate providers of financial services.

  • In many respects, with a growing number of fraudulent platforms and associated emergency measures of the South Korean government to regulate the cryptocurrency sphere.

    Last week the local cryptocurrency community in conjunction with the financial bodies were uncovered a few fraudulent cryptocurrency exchanges, among which was a bogus exchange BitKRX, which used the name of the largest financial platform in South Korea, created the stock exchange and the futures exchange South Korea KOSDAQ — Korea Exchange (KRX).

    Exchange BitKRX attracted users on its platform that called itself a branch of the KRX.

    One of the largest South Korean media, Chosun, reported that regulatory and law enforcement agencies began to shut down cryptocurrency exchanges with fake reputation and unscrupulous marketing.

    Including this week Bithumb — largest cryptocurrency exchange in South Korea, as well as the second largest trading platform in the global cryptocurrency market -said that the fair set of rules for investors and businesses will contribute to the exponential growth of the cryptocurrency market. In many ways, these rules would protect investors from scams and Ponzi schemes.

    This month, law enforcement authorities in South Korea have uncovered one Ponzi scheme for $ 200 million. It was the company MiningMax. As a result, the charges of fraud and economic crimes arrested 14 people.

    Despite the fact that there are countries such as USA, Japan and Europe, the share of South Korea is 4.6% of the global cryptocurrency market.

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