[Fact check] Eun Seong-soo “200 cryptocurrency exchanges”… Will there really be 200?

“There are 200 cryptocurrency exchanges, but if they are not registered, they will all be closed.” (Sungsoo Eun, Chairman of the Financial Services Commission)

The cryptocurrency trading industry raised questions about the remarks of the chairman of the Financial Services Commission that there are close to 200 domestic cryptocurrency exchanges. It is also pointed out that the government has launched random strikes without identifying specific industry divisions or current status.

Finance Commissioner Eun Seong-soo attended the general meeting of the National Assembly Political Affairs Committee on the 22nd and said, “There are 200 cryptocurrency exchanges (operating in Korea). If not, everything will be closed.”

The amendment to the Special Money Act, which took effect on March 25, is based on the content that domestic cryptocurrency exchanges (Bitsum, Upbit, etc.) should be considered as’financial companies’ and regulated money laundering and terrorist financing using cryptocurrency. .

Accordingly, related companies must meet certain requirements in order to operate a cryptocurrency trading business as a’virtual asset business’ and then submit a report to the Financial Services Commission’s Financial Information Analysis Agency (FIU). Specifically, related businesses must meet requirements such as ΔInformation Security Management System (ISMS) certification, ΔReal name verification deposit and withdrawal account opening (except for businesses that do not exchange cryptocurrency and money).

According to Chairman Eun’s remark, there are at least 200 exchanges that must report business operators to the Financial Information Analysis Institute. However, it was found that the 200 places that Chairman Eun claimed only cited the findings of private companies, and there was no independent investigation by the Financial Services Commission.

Regarding the grounds of the ‘200 exchanges’, which was remarked by the chairman of the Financial Services Commission, the Financial Services Commission replied, “Some private consulting firms estimate that there are 100 to 200 cryptocurrency exchanges, and that’s what they said (200).”

The industry is angry with the position of the financial authorities. It is said that the authorities collectively refer to all related businesses as’exchanges’ regardless of their understanding or distinction of cryptocurrency-related businesses, and misrepresent them as if the cryptocurrency exchanges are massaging and causing damage to investors.

An official in the domestic blockchain industry who requested anonymity said, “The government and the media estimate the number of domestic virtual asset operators from 100 to 200, but the basis is not clear.” It seems to be a number including companies, etc. There are about 20 cryptocurrency exchanges used by investors,” he said. Currently, there are only 13 exchanges listed as member companies in the Korea Blockchain Association.

Another official in the cryptocurrency trading industry said, “The government has not compiled cryptocurrency trading sites in the first place, and there is no standard for’virtual asset operators in operation’.” It seems that it is estimated that 100 to 200 places, including cryptocurrency exchanges and research institutes that have been created, are not properly checked for business closures,” he said.

The official pointed out that “the Fair Trade Commission will conduct a’unfair terms and conditions investigation’ against cryptocurrency exchanges, but there is no understanding of the status that should be preceded for this,” he pointed out that “there is no list for management of the exchange.”

However, in the cryptocurrency trading industry, it is analyzed that, including cryptocurrency developers (cryptocurrency issuing companies), consignment business companies, and over-the-counter (OTC) companies, there are about 200 companies operating cryptocurrency-related businesses in Korea.

An official in the domestic blockchain industry said, “Cryptocurrency-related businesses should not be collectively referred to as’exchanges’. The government should clearly identify cryptocurrency-related businesses and conduct investigations on related businesses.” Raised.