Korea’s Financial Intelligence Unit (FIU) has ordered multiple cryptocurrency exchanges in the country to delist some tokens the agency considers too risky for investors.
Notably, the FIU contacted 33 crypto trading platforms and informed them it would conduct a field consultation before September 24 aimed at checking whether the platforms in question are compliant with the requirements set by the Specific Financial Transactions Act, which came into force in March.
As a result of the actions of the FIU, Upbit has removed the cryptocurrencies Maro, Paycoin, Observer, Solve.Care and Quiztok from its platform and has issued warnings for other 6 assets, which might eventually delist too after a review process. The exchange’s decision to withdraw support for these assets has caused their price fell by 50–70%.
Out of the 20 crypto exchanges that have received the Security Management System certificate, 11 have been contacted by the authorities to take actions against risky tokens.
In its attempt to regulate the cryptocurrency industry, South Korea’s Financial Services Commission (FSC) has created 5 working groups aimed at implementing the country’s crypto legal framework.