South Korean financial regulators plan to ban cross trading, and South Korean crypto exchanges will face more problems.
According to a South Korean news agency Newsis reported on Sunday, South Korean financial regulators will prohibit local cryptocurrency exchanges from trading without records.
A closed-door meeting was held last week in which as many as 20 South Korean cryptocurrency exchanges participated. During the meeting, the Korean Financial Services Commission outlined a regulation that if exchanges are to continue operating in South Korea, they must meet this requirement. One provision.
This rule will prohibit cross trading, that is, execute buy and sell orders for the same asset at the same price without recording the transaction. In order to continue to make profits through cross trading, the exchange must open a special fiat currency exchange business.
The exchange does not like this rule. The exchange said that the cost of operating a legal currency business is high, and the prohibition of cross trading will lead to bankruptcy.
However, the Financial Services Commission believes that restricting cross trading will prevent price manipulation and ensure that exchanges will not obtain information before customers.
Small exchanges have previously complained that the cost of applying for a license is too high, and only a few exchanges with sufficient funds are able to meet the strict requirements of the Financial Services Commission.
In any case, major exchanges must apply for licenses before September 24, or they will be shut down.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.