South Korea enforces stricter crypto licensing for exchanges and investors

So, South Korea is about to roll out some new laws on crypto licensing for exchanges and their shareholders, and it’ll kick in after a six-month prep phase. The government says it’s all about protecting consumers, but honestly, these tough rules might end up choking the industry instead. Big exchanges could have to change up their ownership structures if they impose limits on who can hold shares, and these new rules might scare off foreign investors from putting their money into Korea. What do you all think about this?

legislation is supposed to protect investors but they also limit trading options and reduce competition, thus increasing trading fees for users. Since 2021, the number of platforms has decreased from dozens to just Upbit, Bithumb, Korbit, Coinone, and GOPAX, all of which have partnerships with Korean banks. If the new legislation is implemented, the number may decrease from 5 exchanges to two or three.

Yes, that's right. After the KuCoin and MEXC exchange apps were banned, only these exchanges that you mentioned remain, and they are all basically Korean platforms, meaning they are owned by South Korean companies. I agree with you that the number may decrease from five platforms to only two, namely Upbit and Bithumb, which are the largest in the Korean market, with Upbit alone controlling approximately 72% of the Korean market.

We know that South Korea has indeed regulated the crypto industry operating there. Currently, as far as I know, 14 crypto exchanges have been blocked for various reasons, including the KuCoin and MEXC exchanges. Legally, we understand that every regulation that is implemented cannot be separated from compliance with the law and other reasons for money laundering and user losses are difficult to open secret in every country regarding the crypto business operating in that country's territory. We understand that like South Korea, they are aware of the assets that are currently operating on crypto exchanges, they don't leave it alone if there are exchanges that are not registered and do not have permits, However, fines for illegal exchanges await and legal exchange taxes are certain, meaning that you comply with regulatory rules legally, the exchange is safe for the country to make a profit, that is the real point.