The Financial Services Commission (FSC) claimed that 16 major cryptocurrency service providers in South Korea are accused of violating the so-called “Specific Financial Information Act”.
The regulator claims that these platforms conducted trades without proper accounting. Also, the companies’ promotional campaigns included various “enticing” materials, which could cause false expectations among customers.
uCoin, MEXC, Phemex, XTCom, Bitrue, ZBCom, Bitglobal, CoinW, CoinEX, AAX, ZoomEX, Poloniex, BTCEX, BTCC, DigiFinex и Pionex fell under the accusation.
Violation of the law carries a penalty of 50 million Won ($37,000) to a prison sentence of five years. Besides, the fined company will not be able to work in the field of cryptocurrencies for several years.
So far, the exchanges’ representatives have not commented on the regulator’s claims.