The government of South Korea has mentioned the 21 cryptocurrency exchanges in the country that has received certifications as proof that they are regulated. The nation news outlet in the country, Yonhap Infomax, revealed in a news release that the government is doing all it could to stop criminal activities related to cryptocurrencies. This is about the application status of the 63 crypto exchanges in the country that has received September 24 as the deadline for its reporting.
The certification issued by the Information Security Management System (ISMS) is the validation for the physical, administrative, and technical protection measures of the information systems of any crypto exchange in the country.
This certification acknowledges that the crypto exchange has met the required conditions and standards that will enhance the protection of investors and minimize illicit acts.
Till now, only 21 out of the 63 exchanges operating in the country have received the certification. Among them are the Bithumb, Korbit, Upbit, and Coinone. A large number of the exchanges did not apply at all for the certification, and currently, no one is aware of what their fate will be.
The Korea Internet and Security Agency (KISA) which is in charge of the certification process, said that the whole process would last for about three to six months from the application. This implies that any exchange that has not submitted its application by now will miss the deadline.
One of the government officials in the country has this to say about the situation, “Any user transacting with a crypto exchange that has not applied for the ISMS Certification are susceptible to risks, and the business stands a chance to be closed or suspended.”
From the report, it is revealed that the Korean government has seized up to $218 million from illicit activities, and these events have made the government hell-bent on the regulation.
The Government is Not Pulling Punches
Since last year, the South Korean government has not shied away from its intention to go stricter with crypto market operations in the country. The government has placed a ban on privacy coins and has subjected the exchanges to more restrictions while taxing income from the asset class. This has led to the final shutdown of about 11 exchanges in the country, and it is looking like there will be more to follow in the time to come.
The government is currently developing its own CBDC, and the central bank of the country revealed that the release of a CBDC and blockchain usage is in its ten-year plan for economic growth.
Despite the crackdown, the enthusiasm in the market doesn’t seem affected, as the banks in Korea witnessed a 100% in crypto transactions in Q2 2021. While the number of citizens involved increases by five times.
The crypto asset class is popular in the country, and there has been a huge backlash on the high tax rate though some investors are okay with it while the younger investors opposed it generally.