Fair Trade Commission FTC South Korea - South Korean Cryptocurrency Exchanges Must Make Contracts More ‘Consumer-Friendly’

South Korean Cryptocurrency Exchanges Must Make Contracts More ‘Consumer-Friendly’

South Korea has always been spreading news for the cryptocurrency community. This time, the South Korean Fair Trade Commission (FTC) ordered twelve cryptocurrency exchanges to change their adhesion contracts because they lack customer protection, explained the local news outlet Yonhap News.

FTC Orders Changes in Cryptocurrency Exchanges

First of all, ‘adhesion contracts’ are contracts that are created by an entity where the terms are conditions are non negotiable to the customer. According to the FTC some cryptocurrency exchanges must change the current form of these contracts if they want to keep operating in the country.

South Korean Flag
South Korean Flag

According to the FTC, the contracts as they are now, do not allow users to withdraw their deposits, limit user services, and put financial burden on users once they end the membership on the cryptocurrency exchange.

This is an important measure that will give transparency to the market and will allow exchanges and investors to operate in a more secure and predictable framework.

South Korea is one of the most active countries in the international cryptocurrency market. Only surpassed by the United States and Japan. Since the last year, the South Korean government has decided to impose tight regulations to cryptocurrency exchanges and activities.

Initial Coin Offerings (ICOs) are banned in the country and cryptocurrency exchanges are strongly regulated. Crypto exchanges need to follow strict rules if they want to keep offering services to their clients.

Some days ago, South Korean regulators explained that they will release a cryptocurrency tax framework by June. Fuji News Network (FNN) reported on March the 25th, that the South Korean Ministry of Strategy and Finance will release a taxation framework for cryptocurrencies.

Apparently, this is a result of the discussions held at the G-20 summit held in Buenos Aires between March the 19th and the 20th.

The G-20 countries proposed to follow the Financial Action Task Force on money Laundering (FATF) standards. After the summit, we reported at UseTheBitcoin, what the regulators at the G-20 discussed and arranged.

The FNN will also be setting up a full-scale cryptocurrency regulation after the elections on June the 13th.

Build a winning crypto portfolio
Free report teaches how to structure your crypto portfolio, so you can maximize gains and minimize losses.
We respect your privacy.