Cryptocurrency exchanges have been all over the news lately. New stories concerning regulations, new laws, new exchanges launching and some shutting down, new coins being listed and more have surfaced every day. These news usually come from the same group of countries that are fighting digital currencies relentlessly. Today, news are coming from South Korea. A famous cryptocurrency exchange has been having issues to comply with regulations set by the government and had to shut down.
Coinpia, a popular crypto exchange from South Korea has released a statement explaining that it had halted trading on the platform, as well as Korean won deposits because it needed to comply with an official regulation. The regulation in question is from the Financial Services Commission, introduced in January, stating that traders and cryptocurrency investors have to provide their official names and bank accounts to be able to trade on South Korean exchanges.
This exchange had already been fined around $130,000 in the past because it wasn’t able to provide enough security and privacy protection for its users.
It is one of the first time that a country has been able to impose regulations on a cryptocurrency exchange. It is rather unusual, as cryptocurrencies and exchanges are still out of reach of lawmakers across the globe. It is safe to assume that governments will be able to monitor and regulate digital currencies more and more in the future. Will this be positive or negative for the markets? For now, there is no way to know.
TLDR: Coinpia, a South Korean cryptocurrency exchange has decided to suspend deposits and trading on its platform in order to comply with the newly introduced Financial Services Commission regulations. It is one of the first instances of a government intervening in the crypto space, and it is probably only the beginning.