[Breaking] South Korea Crypto Exchanges Could Sue Government for Alleged 'Unconstitutional' Banking Requirements

South Korea crypto exchanges are now allegedly contemplating whether they should sue the government due to "unconstitutional" banking requirements. All of the cryptocurrency exchanges in South Korea except just the four largest ones might not be able to meet the bank requirements that are needed for them to stay in business.

South Korean Crypto Exchanges on Country's Crypto Law

According to an article by News.Bitcoin.com, there are now a number of different Korean crypto exchanges that are all considering whether they should sue the government as well as financial authorities saying the country's crypto law is actually "unconstitutional." The official revised "Act on Reporting and Use of Certain Financial Transaction Information" would require these cryptocurrency exchanges to submit a particular document by the date September 24, 2021.

The cryptocurrency exchanges are asked to submit a document that would include a real-name account which is issued by a bank. Banks in South Korea, however, are still quite reluctant to provide a "real-name service" to cryptocurrency exchanges due to concerns regarding money-laundering activities

Smaller Crypto Exchanges Struggle to Keep up

There are several banks which include Shinhan Bank and NH bank that are conducting risk assessments when it comes to the country's top cryptocurrency exchanges including Coinone, Upbit, Bithumb, and Korbit. As of the moment, however, there are still no banks that are willing to work along with smaller crypto exchanges.

This would then result in a large number of different exchanges all expected to force shut down in the future. One exchange even stated that banks are currently refusing to initiate their particular cryptocurrency exchange verification process without giving any clear reasons and there are a lot of exchanges that are failing to get a chance to even prove themselves. The commenter then stated that The Financial Services Commission has to step in as soon as possible, the story was reported by Business Korea.

Read Also: Breaking: Binance Banned from Operating in UK a Day After Japan and Canada Ban, FCA

Is Cryptocurrency Improving?

As of the moment, the state for smaller cryptocurrency exchanges are still unknown. It is also still unknown as to whether the banks are planning any action regarding this particular issue. What is known as of the moment, however, is that smaller cryptocurrency exchanges risk extinction if they are incapable of keeping up with the government's demands.

As of the moment, whether or not the crypto exchanges will officially sue the government is still quite uncertain since no official movement has been taken. However, should any new news regarding the matter, TechTimes will provide an update.

In other news, the top 10 cryptocurrencies now seem to be recovering as the percentage change within the last 30 days does not seem that bearish anymore with Bitcoin turning up a positive change, according to WhaleBot Alerts on Telegram. Of course, this is still relative since it is only within a 30 day window. However, there have been talks of cryptocurrency officially recovering with analysts giving mixed opinions.

Related Article: Top 10 Crypto 'No Longer that Bearish' as Coins Show Less Than -23% Change Over Last 30 Days

This article is owned by Tech Times

Written by Urian B.