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Saturday, June 8, 2024
HomeCrypto70% of Korean trading floors are "dead", causing difficulties for investors

70% of Korean trading floors are “dead”, causing difficulties for investors

Investors in South Korea’s booming cryptocurrency market are facing a digital storm following shocking revelations by financial regulators. A joint study by the Financial Supervisory Service (FSS) and Korea’s Financial Intelligence Unit (FIU) found that 70% of cryptocurrency exchanges were closed, leaving their customers devastated, with no returns. get the investment amount.

Potential risks of these coin. coin little known

This news comes as a shock to the more than 6 million Koreans, about 10% of the population, who have entered this cryptocurrency pool. Unlike their global counterparts, Korean investors are known to invest in riskier, lesser-known varieties alongside established names like Bitcoin.

The report paints a grim picture of industry practices. Many defunct exchanges did not even bother to warn users before ceasing trading, leaving them struggling to salvage their investments. Even in cases where some form of notice was given, the withdrawal process was described as “extremely inconvenient” when a small team was tasked with handling the sheer number of claims.

A stern warning to CEOs

FSS is working to strengthen trust in the digital asset market. They have pledged to work closely with other financial watchdogs to develop stricter regulations to shut down financial companies, especially exchanges. They also issued a stern warning to CEOs of digital asset service providers, reminding them to comply with the upcoming Virtual Asset Investor Protection Law, which will take effect in July.

While the potential for high returns is undeniable, the risks associated with a largely unregulated market are becoming increasingly apparent. As the FSS grapples with creating a regulatory framework, Korean investors should be cautious or risk being caught up in the next digital chaos.

BTC 4-hour price chart | Source: TradingView

The Korean scammer was caught

Adding to the chaos, South Korean law enforcement recently arrested 19 individuals in connection with a “cryptocurrency reading room” scam that defrauded more than 300 investors causing $19 million in losses. la. Operating on platforms like Telegram, the gang poses as experts to tempt victims with promising advice and fake endorsements.

They used fake apps linked to bogus exchanges, luring victims with initial profits before imposing fabricated “withdrawal fees” and cutting off communications. The investigation also uncovered a disturbing recruitment tactic known as “pig butchering”*, in which victims are promised jobs in Myanmar but are forced to commit fraud upon arrival.

*Pig butchering is a form of fraud in which the offender spends a long time gaining the trust of victims, before encouraging them to invest in the stock market, cryptocurrency or foreign exchange exchange .

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According to Bitcoinist

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.


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