The forthcoming regulations in South Korea, which will require exchanges to have a real-name account at a local bank by September, might push many smaller trading platforms out of business. They are reportedly planning to fight back by suing the government.
CryptoPotato reported before that the Korean government plans to implement a new rule on cryptocurrency trading venues. It carries hefty fines on these companies, should they fail to comply with AML rules.
After several giants withdrew from the country, including Binance Korea and OKEx Korea, other exchanges have also voiced out concerns lately.
According to a Business Korea coverage, they also intend to take legal actions against the government.
By arguing that the Korean authorities have failed to come up with fair regulations, representatives of some of the exchanges said they might sue the South Korean government.
The report asserted that local banks are “reluctant” to do business with digital asset trading platforms. Some exceptions are evident for the four largest local exchanges – UPbit, Bithumb, Coinone, and Korbit.
This is why smaller trading venues believe they have been discriminated against, as one of the reps explained:
“These days, banks are refusing to initiate their cryptocurrency exchange verification processes without clear reasons, and most exchanges are failing to get a chance to prove themselves. The Financial Services Commission needs to step in right away.”
Another report from earlier today reaffirmed the belief that some exchanges might be denied bank accounts, especially such offering “too many” coins to their customers.