Korean regulator obliged crypto exchanges to renegotiate contracts with customers

Korean regulator obliged crypto exchanges to renegotiate contracts with customers

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The Fair Trade Commission of the Republic of  South Korea (FTC) has obliged 12 local cryptocurrency exchanges to terminate contracts with customers that users entered during registration at trading floors. This is reported by Yonhap.

Among the trading platforms were such large exchanges as Bithumb, Korbit and Coinone. According to the message, the reason is that, according to officials, the exchanges failed to provide the necessary security for users.

According to representatives of the FTC, the so-called merger agreements, in which the weak party either agrees to all conditions, or refuses to cooperate, may have a negative impact on the safety of users. Such contracts are often concluded with leasing, insurance, mortgages, etc., but they do not provide the necessary protection for clients of crypto exchange trading floors.

In particular, existing contracts restrict customers in withdrawing funds from deposits. In addition, methods that use crypto exchange sites, forcing users to incur financial losses at the time of the end of cooperation with the exchange.

Thus, the government is trying to protect the cryptocurrency exchange ecosystem and is actively fighting money laundering. Also earlier reported on the investigation of possible tax evasion.

Trading platforms will have to revise their user agreements and in the near future to make changes to them.

Despite the tightening of conditions, South Korea continues to be the main market for the development of cryptocurrency and blockchain technology.

Recall, in March, South Korean regulators announced the verification of the activities of banks working with cryptocurrency exchanges.

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