Registration of cryptocurrency exchanges in South Korea as telemarketing businesses will be cancelled.
According to South Korean Government and industries, Fair Trade Commission (FTC) sent an official document to local borough offices in Gangnam-gu and Youngdeungpo-gu stating that it cannot see cryptocurrency exchanges ad telemarketing businesses and that they need to cancel cryptocurrency exchanges’ registration as telemarketing businesses reported through local autonomous entities.
Each borough office is planning to cancel registration according to a request from FTC. Borough offices are planning to cancel registration one by one after gathering opinions from cryptocurrency exchanges. If cryptocurrency exchanges publish their registration numbers on their homepages even after cancellation, they can be punished according to relevant laws.
“We are taking relevant procedures according to a request from FTC.” said a representative for Youngdeungpo-gu’s borough office. “We are going to take opinions from cryptocurrency exchanges until the 1st of May and take appropriate measures.”
“We are looking into an official document send by FTC.” said a representative for Gangnamgu-‘s borough office. “Because there are more than 10 cryptocurrency exchanges registered in Gangnam-gu, we are looking into matters one by one.”
Previously, FTC came to a conclusion that it could not see cryptocurrency exchanges as telemarketing businesses. Although major cryptocurrency exchanges registered themselves and are operating as telemarketing businesses after reporting to local autonomous entities, FTC cannot see them as telemarketing businesses since types of their businesses are different from Electronic Commerce Law.
FTC warned people that they should not misunderstand cryptocurrency exchanges as trustworthy businesses that were approved by South Korean Government and local governments due to their registration numbers of telemarketing businesses published on their homepages. It explained that registration numbers can be easily had just by reporting to local governments.
Cryptocurrencies are starting to delete their registration numbers on their homepages and others to fulfill FTC’s policy. Bithumb and Korbit already deleted their numbers on their homepages. Coinone made an announcement of its plan to delete its number after going through certain procedures such as notifying its members. Upbit recently made an announcement that it will delete its registration number as a telemarketing business.
“We deleted our registration number on our homepage to fulfill FTC’s policy.” said a representative for Upbit.
Staff Reporter Yoo, Seonil | ysi@etnews.com