Korea’s Authorities Ban Exchanges From Handling Own Tokens

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According to local publication Arirang, Korea’s Financial Services Commission (FSC) has banned South Korean cryptocurrency trading platforms from handling tokens issued by themselves as part of what is known as the “coin cleanup.”

The country’s regulators are tightening the regulation of the cryptocurrency industry, and this is just a new measure and probably will not be the last. For example, yesterday we reported that 11 South Korean exchanges had been ordered to delist risky tokens.

Per the new measure, which will come into effect on June 26,  the FSC is prohibiting exchanges handling digital assets issued by themselves or by persons related to them.

What are exchange tokens? They are basically tokens issued by trading platforms that users can use to benefit from lower trading fees, among other things.

Platforms failing to comply with the regulations could face fines of up to $88,000 and might be forced to suspend their operations.