Logo
Avatar
|
13Views

Crypto regulation in the world: weekly digest #130

South Korea

South Korean authorities have issued a suspension notice to Upbit, the country's largest cryptocurrency exchange, due to significant violations of Know Your Customer regulations. The Financial Intelligence Unit under the Financial Services Commission reported that Upbit failed to properly verify the identities of between 500,000 and 700,000 accounts, which raises serious concerns about compliance with anti-money laundering laws.

The FSC has proposed a six-month suspension on new user registrations. Existing users will still be able to trade during this period. Upbit has until January 20 to contest the allegations, and a final decision regarding the suspension will be made on January 21.

Violation could incur fines of up to 100 million Korean won (approximately $68,600), potentially leading to total penalties amounting to around 34 billion Korean won ($27 million) due to the high volume of breaches identified.

The suspension could have far-reaching consequences not only for Upbit but also for the broader South Korean cryptocurrency market. As Upbit controls over 70% of the trading volume in South Korea, any disruption in its operations may lead users to migrate to rival exchanges, impacting liquidity and trading volumes significantly. Furthermore, this regulatory action reflects South Korea's stringent approach to enforcing compliance within the cryptocurrency sector, which has been tightening since the implementation of the Virtual Asset User Protection Act in July 2024.

Singapore

Recent developments indicate that Polymarket, a decentralized prediction market platform, is facing significant regulatory challenges and may be classified as a gambling site in several jurisdictions.

On January 12, 2025, Singapore's Gambling Regulatory Authority officially blocked access to Polymarket, labeling it as an «illegal gambling site». Authorities stated that users attempting to access the platform would face penalties, including fines of up to SGD 10,000 or imprisonment for up to six months. The ban aligns with Singapore's strict gambling laws, which only permit state-owned operators like Singapore Pools to offer gambling services.

Following Singapore's lead, Thailand announced plans to ban Polymarket on January 15, 2025. The Cybercrime Investigation Bureau cited concerns regarding the platform's use of cryptocurrency for betting on various events as a violation of local gambling laws. This move is part of a broader initiative to combat unregulated online gambling and protect citizens from potential financial losses associated with such platforms.

In addition to actions in Asia, Polymarket is under scrutiny in Europe and the United States. The French National Gaming Authority is investigating the platform for compliance with local gambling laws, while the U.S. Commodity Futures Trading Commission has issued subpoenas related to its operations. Reports indicate that Polymarket has previously faced legal challenges in the U.S., including a significant fine in 2022 for offering unregistered trading services.

The classification of Polymarket as a gambling platform poses serious implications for its operations. Users in affected jurisdictions will be unable to access the platform, which could significantly reduce its user base and market activity. Participants engaging with Polymarket from these regions may face legal repercussions, including hefty fines or imprisonment. The AML/KYT platform, like TokenScope, will also mark Polymarket-related crypto transactions as gambling (high risk).

Germany

Boerse Stuttgart has recently made significant advancements in the cryptocurrency space by launching its crypto custodian services through its subsidiary, Boerse Stuttgart Digital Custody GmbH. This move is underscored by the company's recent achievement of obtaining an EU-wide license under the Markets in Crypto Assets Regulation, making it the first German provider to secure such a license.

Boerse Stuttgart Digital Custody offers fiduciary custody for cryptocurrencies, adhering to stringent security standards. It is licensed under German financial regulations and supervised by the Federal Financial Supervisory Authority (BaFin). The custody service employs cutting-edge security technologies and is backed by insurance from Munich Re, which protects against risks such as theft or hacking. With over five years in operation, Boerse Stuttgart Digital Custody has managed cryptocurrencies valued at over two billion euros. The service is designed to support both private and institutional clients, providing a user-friendly interface for managing digital assets.

Following the acquisition of the MiCA license, Boerse Stuttgart aims to broaden its offerings for banks, brokers, and asset managers across Europe. This includes integrated solutions that facilitate secure access to cryptocurrencies for financial institutions.

Boerse Stuttgart's entry into crypto custody services represents a significant step in enhancing the regulatory framework and security measures surrounding digital assets in Europe.

News from other countries:

  • Dubai is set to construct the world's first Crypto Tower, a 17-story building specifically designed to cater to the growing blockchain, decentralized finance, and Web3 sectors. This ambitious project, announced by the Dubai Multi Commodities Centre and REIT Development, aims to solidify Dubai's position as a global innovation hub.

  • Thailand is on the verge of allowing the listing of Bitcoin exchange-traded funds (ETFs) on its local exchanges, marking a significant shift in its approach to cryptocurrency investment. The Securities and Exchange Commission of Thailand is currently evaluating this possibility, which could enable both individual and institutional investors to invest directly in Bitcoin ETFs.

  • Recent developments indicate that President-elect Donald Trump is poised to make cryptocurrency a national priority in the United States. This initiative is expected to be formalized through an executive order shortly after his inauguration. We continue to highlight the news of the world of crypto regulation worldwide. Please stay with us!

The TokenScope Team
#TokenScope #CryptoNews #ETF #SEC #Singapore #Upbit #EU #AML
More about TokenScope cryptocurrency risk assessment & investigation platform at: