Bře 20

4 Ways Criminals Are Trying to Cash out Their Bitcoin

· March 20, 2018 · 2:30 pm

Due to the increased spotlight on cryptocurrency, criminals are finding it more difficult to cash out their Bitcoin for fiat, but they are finding ways to do so.

A common media portrayal is that of a criminal who plies their trade on the Dark Web and amassing a fortune in Bitcoin. It is true that the daddy of cryptocurrency can be used for all manner of illicit transactions, but an interesting phenomenon is now occurring. While some criminals have amassed a veritable fortune in bitcoins, they are finding it increasingly difficult to cash out the cryptocurrency to fiat. However, they are finding some ingenious ways to do so.


A Hard Knock Life

A recent report by Vice highlights this issue that criminals are having. People who conduct illicit business on the Dark Web, such as selling stolen information or malware, are making some serious money, but they are facing obstacles in converting that digital wealth into actual fiat currency.

The main reason for this problem is that cryptocurrency is the victim of its own success. The massive surge in value towards the end of 2017 shone a very bright spotlight upon the cryptocurrency sphere, catching the attention of law enforcement and regulatory bodies.

The increasing acceptance of cryptocurrency has led to more regulations being put into place, such as exchanges requiring verifiable information from its users. Law enforcement has also become more adept at infiltrating the seedy underbelly of the crypto sphere, not to mention keeping a sharp eye on large-scale transactions.

Some Savvy Criminals

This increased scrutiny has led criminals to try to cash out their Bitcoin. Swiss bankers have reported being contacted and offered a 10% payment if they could facilitate large-scale transfers; offers that they have, so far, rejected.


However, criminals can be an ingenious lot at times. A few methods for cashing out their bitcoins were revealed to Vice. One such method is using Western Union. An online drug dealer says he uses services that will automatically transfer cryptocurrency to accounts belonging to Western Union. Then he uses another person to pick up the fiat.

Probably the safest way to cash out is to sell the Bitcoin to a trusted person in the real world. A malware seller tells Vice that he regularly sells cryptocurrency to a local person a few times per week, who then leaves a bag of cash on their porch a few hours after the crypto is transferred. Another method is to work with a company that charges pre-paid debit cards with cryptocurrency. Criminals note that the card issuer does not know what is being used to charge the card as another company handles that. If the card requires some documents, fake ones can be procured on the Dark Web.

Law enforcement notes that another viable option for criminals is to use a bank in Eastern Europe. Regulations dealing with cryptocurrency are much more lax in that particular region. In fact, Europe is currently known as a weak link when it comes to money-laundering and cryptocurrency. Even now, such enforcement is not high on the EU list of priorities, which is something that cybercriminals are very aware of. In addition, criminals are now moving away from Bitcoin and into other cryptocurrencies that are far more private.

Do you think criminals will always find a way to cash out their cryptocurrencies? Let us know in the comments below.

Images courtesy of Pexels, Pixabay, and Bitcoinist archives.

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Bře 07

SEC Chairman: ‘Abide by the Law. We are Watching.’

· March 7, 2018 · 12:30 pm

Securities and Exchange Commission (SEC) Chairman Jay Clayton went on FOX Business yesterday to inject some fear into investors — particularly those interested in Initial Coin Offerings (ICOs).

‘We Are Watching’

SEC Chairman Jay Clayton has issued a serious threat to the cryptocurrency space and, in particular, to ICOs.

Clayton — who was nominated by President Donald Trump — initially claims he’s just got investors’ best interests at heart, telling FOX Business:

I worry in particular about people who see things that look like a New York Stock Exchange or NASDAQ listing for ICOs or cryptocurrencies and think that I’m getting the same protection for my token that I would be getting for a share of stock that trades on an exchange. They’re not.

Now that you know Clayton’s got your back, you can also rest assured that he and the SEC are investigating whether or not ICOs are violating securities laws. He told FOX Business:

Many ICOs and many of the ones I’ve looked at specifically are securities. … For some reason, people selling ICOs seem to think they don’t need to follow either path; they seem to think they can have the best of both worlds: a limited disclosure from a private placement and public trading and public offering of the token.


Unsurprisingly, Clayton’s concerns rest primarily with how ICOs raise their capital. He explained:

We have seen instances where companies seem to have had trouble raising money in a traditional private placement and then have switched to an ICO in order to raise the money. The business hasn’t changed substantively, but it’s a form-over-substance way to raise money. That is troubling.

Nevertheless, Clayton knows a war against cryptocurrency will ultimately not work in anybody’s interest — particularly his. Thus, he pretends he wants to open a constructive dialogue, while at the same time sending a threatening message:

It’s important to understand that the fundamentals of our securities laws do apply in this space. It’s a technology with great promise. … It’s a technology that I really think is pretty cool and can change the way people do business at a great deal of efficiency, but it doesn’t mean that you can obviate our tried-and-true approach to the federal securities laws.”

Clayton’s entire discussion can ultimately be summed up in three authoritarian sentences:

Abide by the law. We are watching. Others are watching.

What do you think of Clayton’s warning? Do you think ICOs should be more careful with how they raise funds? Let us know in the comments below!

Images courtesy of Bitcoinist archives.

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Bře 04

SEC Subpoenas TechCrunch Founder’s Crypto Fund — And Everyone Else, Too

· March 4, 2018 · 12:30 pm

While the U.S. Securities and Exchange Commission dishes out subpoenas to cryptocurrency projects like a generous house doles out candy on Halloween, TechCrunch founder Michael Arrington’s $100 million cryptofund has also come under investigation.

‘They Just Have to Figure out What They Want.’

TechCrunch founder Michael Arrington’s $100 million cryptofund has been subpoenaed by the U.S. Securities and Exchange Commission — which is no skin off Arrington’s back. He told CNBC on Thursday:

We received a subpoena. Every [crypto]fund I’ve talked to has received one. That’s fine. They just have to figure out what they want. They need to set up rules so we can all follow them, and the market is begging them for that.


Too Much Confusion

Indeed, the SEC apparently has no idea exactly what it wants, having already indicated that regulations in regards to securities laws do not apply to digital coins. The confusion created by the SEC has even caused many cryptocurrency firms to ban U.S. investors from getting involved in the projects.

Meanwhile, the SEC’s New York, Boston, and San Francisco offices have been issuing subpoenas like it’s their job, in an attempt to learn as much as possible about the burgeoning billion-dollar industry. Said Jason Gottlieb, partner at Morrison Cohen, who is defending PlexCorps against charges of fraud:

Clearly it’s a coordinated, grand investigation. I would expect it’s going to continue throughout this year.

Goodbye, USA

According to Arrington, the negativity and confusion created by the SEC is driving innovation away from the United States. He told CNBC:

That’s a shame, The U.S. has just frozen itself. The stuff coming out of Asia is uniformly high quality.

US flag

The US is not the only country struggling with regulation, of course. South Korea has ping-ponged back and forth while China has outright banned Initial Coin Offerings. Japan has somewhat successfully implemented a licensing system for cryptocurrency exchanges, while European financial authorities in Germany and France are calling for a global crackdown.

Still, the US remains in the spotlight and risks driving out innovation while the SEC dithers. Says William Mougayar, author of The Business Blockchain:

I hope they don’t go [down] the slippery slope of trying to classify tokens because it’s a grey zone throughout. Rather, focus on requiring disclosures that are well-defined, while not being too restrictive yet.

For now, we’ll just have to wait and see.

What do you think about the SEC’s subpoena-issuing spree? Do you think effective, innovation-supporting regulation will come from its investigation? Let us know in the comments below!

Images courtesy of Reuters, Wikipedia Commons, Flickr.

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Úno 28

So Why Did Goldman Sachs-Backed Circle Really Buy Poloniex?

· February 28, 2018 · 10:00 am

Goldman Sachs-backed startup Circle made waves earlier this week when it acquired cryptocurrency exchange Poloniex. A couple of experts share their thoughts on the implications for the soon-to-be first compliant US crypto exchange and its customers.

Most Crypto Exchanges ‘Over-Regulate Themselves’

As the dust settles on Circle’s acquisition of Poloniex, U.S. regulators are keeping a close eye on KYC/AML compliance of cryptocurrency exchanges.

Joseph Weinberg

Joseph Weinberg, OECD Think Tank Special Advisor and Chairman of Shyft, a blockchain protocol that will create a new standard for the KYC/AML mandates, shared his comments with Bitcoinist. He states:

Most crypto exchanges that are processing fiat to crypto transactions are very compliant and, in some cases, even more so than banks. It all really depends on jurisdictions and the compliance policies given by countries to crypto exchanges.

He continued:

For crypto exchanges, the challenge lies in how little formal guidelines there are from regulators. As a result, most of the industry has been doing self-compliance in absence of clear procedures. To err on the safe side, crypto exchanges over-regulate themselves. For example, most exchanges ask for passport verification in order to confirm users’ identities, whereas most banks only require government-issued IDs, such as drivers licenses.

Interestingly, Circle acquired the crypto exchange over a year after announcing it was shifting focus from Bitcoin to blockchain-based services. At the time, the company informed its Bitcoin customers that they can can cash out or transfer their balances to Coinbase, if they wished to continue to use the cryptocurrency.

So why did Circle decide to jump back into the crypto game?

It appears that Poloniex was struggling to keep up with the unexpected surge in new users as prices skyrocketed in the second half of 2017. Additionally, being based in the United States, the company also had to keep up with rising compliance costs as it rolled out its new KYC policies late last year.

Weinberg explains:

In the past, Poloniex had a lot of issues with onboarding new users and properly building out its KYC process, mainly due to the large amounts of time it takes to verify users. Given the level of KYC that exchanges force themselves to go through, scaling compliance is almost a separate product that the exchange has to build out.

According to him, this is where Circle comes in with their KYC/AML expertise. He says:

Through this acquisition, Circle will deploy more people to help handle compliance—more employees to build and process KYC due diligence faster. This is the same type of issue traditional banks have when it comes to scaling. Compliance costs keep multiplying, and yet, they aren’t always found to be effective.

The SEC Is Watching

Meanwhile, another takeaway has been put forth by Nathaniel Popper, author of Digital Gold: Bitcoin and the Inside Story of the Misfits and Millionaires Trying to Reinvent Money.

Popper noted on Twitter that the SEC informally suggested to Circle that no enforcement action will occur if the Boston-based startup “cleans up Poloniex and turns it into a regulated exchange.” He adds:

The SEC seems to be saying here that it’s okay if you broke the rules, as long as you get acquired by a legitimate player before we crack down on you.

The question now seems to be whether the SEC will apply this same thinking to other virtual currency exchanges if they are acquired by large players.

In addition to facilitating compliance, Circle also announced that it will add fiat bridges and expand operation to other markets. Namely, the company promised to explore “USD, EUR, and GBP connectivity that Circle already brings to its compliant Pay, Trade, and Invest products.”

This would imply that the exchange must also become compliant and answer to regulators from across the pond, who are currently scratching their heads on how to approach cryptocurrencies without stifling innovation in the process.

Therefore, regulators in the U.S. and abroad could be playing the carrot and stick strategy by providing an incentive for crypto exchanges to get acquired by the large players, such as Goldman Sachs, before a potential crackdown. Admittedly, this could also be a clever way for traditional finance to not only appear innovative through association but also assimilate would-be future competitors.

If true, the strategy may be futile and usher in the Streisand effect to boot. As technology advances, so do new methods of exchanging cryptocurrency. Therefore, assimilating centralized exchanges like Poloniex could force users to migrate en masse to decentralized exchanges and further bolster their development.

Why do you believe Circle acquired Poloniex? Share your comments below!

Images courtesy of Shutterstock, Twitter/@nathanielpopper.

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Úno 20

South Korea to ‘Support’ And ‘Encourage’ Crypto Transactions – Regulator Chief

· February 20, 2018 · 9:30 am

South Korea will “encourage” banks to interact with cryptocurrency exchanges, regulators have said in a surprising development in the country’s narrative.

Choe: We Want ‘Normal’ Transactions

As local news media outlet Yonhap News Agency reports Tuesday, Choe Heung-sik, governor of the Financial Supervisory Service, has announced government organs will “support” all legitimate transactions in the cryptocurrency trading space.

The comments were delivered during a meeting which included representatives from South Korea’s exchange industry.

The emphasis appeared to be on legal versus illegal transactions, with the promise of support “if normal transactions are made.”

South Korea Issues Ban on ICOsChoe’s hinting at a more open-minded stance from Seoul going forward forms part of a recent departure from lawmakers’ harsher words which caused public outrage in recent months.

Since December, talk of an outright ban on cryptocurrency exchanges had metamorphosed into a ban on anonymous trading. This was then joined by plans to create a Japan-style exchange licensing system, constituting an about turn in the space’s legal prospects.

Turbulence As Police Investigate Official Death

Despite the rapidly-changing landscape, however, Yonhap notes the general atmosphere of confusion and hesitation on the part of exchanges themselves to embrace the current market.

“Currently, local banks have been reportedly reluctant to open virtual accounts for cryptocurrency trading amid the government’s crackdown,” it adds commenting on the teething problems witnessed following the anonymous trading ban when it became law January 30.

On Monday, the government released data showing South Korea’s exchanges generated taxable revenues amounting to almost $650 million in 2017. Taxation, hastily enacted last month and worth 24.2% of that figure, is due for payment by the end of April.

At the same time, a more solemn development this week saw Jung Ki-joon, the official working on future cryptocurrency treatment plans suddenly die of a heart attack. Police investigating the event have since announced a more in-depth review will be carried out.

What do you think about Choe Heung-sik’s plans for cryptocurrency treatment? Let us know in the comments below!

Images courtesy of Shutterstock, Twitter

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Úno 11

New Jersey Cracks Down on Fraudulent Bitstrade

· February 11, 2018 · 7:00 am

Following the fallout from fraudulent Ponzi-scheme Bitconnect’s demise, New Jersey has officially ordered cryptocurrency investment entity Bitstrade to stop offering unregistered and fraudulent securities in the state.

New Jersey regulators have uncovered yet another fraudulent cryptocurrency investment company.

The announcement comes by way of Attorney General Gurbir S. Grewal and the Division of Consumer Affairs and has been ordered by the Bureau of Securities after an investigation found Bitstrade to be in violation of New Jersey’s Uniform Securities Law.

ponzi scheme

Bitstrade was found to have sold unregistered securities while guaranteeing upwards of 10 percent daily returns, despite lacking a proper registration to sell securities in New Jersey.

Bitstrade also failed to disclose what have been deemed “key material facts” to prospective investors, including an official address, the names of its executive officers, the company’s financial status, potential risks to investors, and how investors’ money is used. Attorney General Grewal stated:

The Bureau’s action today reinforces our commitment to protecting investors as they navigate the uncharted and largely unregulated domain of cryptocurrency-related investments. We want to make sure that investors tempted to cash in on the cryptocurrency rage aren’t being lured into sending funds to an anonymous internet entity without knowing where the funds are going or how they’ll be used.

A visit to Bitstrade’s official website indicates that all signs indeed lead to a Ponzi scheme.

The company claims to be registered in the United States and purports to guarantee “outstanding returns” by “working as an investment pool, collecting multiple lower value investments and grouping them into one single HUGE investment, using those funds to trade on the stock market”—without any actual information as to how they use investors money.

BitConnect Sued By 6 Investors Who Lost Over $700K

If it sounds too good to be true, it probably is. According to Sharon M. Joyce, Acting Director of the Division of Consumer Affairs:

What makes Bitstrade’s fraudulent offer potentially more harmful for unsophisticated investors is that cryptocurrency is virtually anonymous, so there is no recourse for investors to recoup their losses. We’re reminding investors to be extra vigilant about fully vetting what is being sold before investing with cryptocurrency.

The Bureau additionally found Bitstrade’s Redland, California and Scottsdale, Arizona addresses to be falsified.

According to Christopher W. Gerold, Chief of the Bureau of Securities, “Bitstrade is a prime example of a company seeking to capitalize on the cryptocurrency craze. Regulators, including the Bureau, are actively responding to fraudulent crypto-cloaked securities offerings.”

Bitstrade requires purchases be made with Bitcoin.

Do you think Bitstrade is a Ponzi scheme? Do you agree that state regulators should actively try to prevent individuals from investing in fraudulent companies? Let us know in the comments below!

Images courtesy of Bitcoinist archives.

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Úno 10

France & Germany ‘Threatened’ by Bitcoin, Want Global Crypto Crackdown

· February 10, 2018 · 9:45 am

With Bitcoin and other cryptocurrencies finally bouncing back after a steep correction to start the new year, finance ministers in France and Germany are looking to shut down the party by calling for a crypto crackdown.

France and Germany ‘Threatened’ by Cryptocurrency

French and German finance ministers continue to call for strict regulation on Bitcoin and other cryptocurrencies.

According to reports, French Finance Minister Bruno le Maire and interim German Finance Minister Peter Altmaier signed a letter to fellow G20 finance ministers, in which they claim cryptocurrencies are not only risky for investors but also threaten long-term global financial stability. They write:

Given the fast increase in the capitalization of tokens and the emergence of new financial instruments … these developments should be closely monitored.

They also claim that cryptocurrencies “are currently largely mislabeled as ‘currencies’ in the media and on the internet,” creating a “lack of clarity” which “can only fuel speculation.”

Bitcoin Germany

The finance ministers additionally claim to be the good guys, looking out for newbie cryptocurrency investors who aren’t quite sure what they’re getting themselves into, writing:

… the buildup of individual exposures to such volatile tokens could have damaging consequences for misinformed investors who do not understand the risks they are exposing themselves to.

Of course, these sentiments can easily be interpreted as authorities from traditional financial institutions feeling the mounting pressure from a rapidly increasing and ever more popular cryptocurrency market, which very much aims to disrupt traditional financial structures.

FUD, FUD, and More FUD

Finance Minister Bruno le Maire and interim German Finance Minister Peter Altmaier are not alone in expressing fears over Bitcoin and cryptocurrency. Other individuals from traditional financial institutions are also voicing their concerns.

European Central Bank board member Yves Mersch expressed his negative opinion on Thursday, stating that cryptocurrencies are “not money, nor will they be for the foreseeable future.”


Additionally, Bank for International Settlements head Agustin Carstens expressed his deep-rooted fears, begging central banks to shut down Bitcoin—claiming cryptocurrencies are “piggybacking” on established institutions and becoming a “threat to financial stability,” stating:

[Bitcoin is] a combination of a bubble, a Ponzi scheme and an environmental disaster.

Now that’s some serious FUD.

What do you make of French and German finance ministers calling for a global cryptocurrency crackdown? Does this worry from mainstream financial institutions signal their growing fear of Bitcoin? Let us know in the comments below!

Images courtesy of AdobeStock, Shutterstock, Bitcoinist archives.

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Úno 06

FUD Storm Continues as China Steps Up Pressure Against Cryptocurrencies

· February 6, 2018 · 9:00 am

Following false fears of a Bitcoin ban in India, the FUD storm continues as China looks to completely eradicate cryptocurrency trading—but can they succeed?

Chinese FUD Strikes Again

It’s been a rough month for Bitcoin and the cryptocurrency market. The price of the dominant cryptocurrency has dropped below $8,000, and many altcoins have suffered even more significant losses, following a seemingly endless flood of FUD (Fear, Uncertainty, and Doubt) from mainstream media outlets.

Now, it appears the FUD of the day is that China, already notoriously unfriendly towards cryptocurrency, is ready to block all access to cryptocurrency trading websites and initial coin offerings (ICOs) by utilizing its notorious Great Firewall of China.


The troublesome story comes primarily from Financial News, a publication affiliated with the People’s Bank of China (PBOC), which is quoted as stating:

To prevent financial risks, China will step up measures to remove any onshore or offshore platforms related to virtual currency trading or ICOs.

Since then, advertisements for cryptocurrencies have reportedly stopped appearing on both Baidu and Weibo—China’s largest search engine and social media platform, respectively.

Scaling the Wall

Though China continues to be an enemy of cryptocurrency, it remains to be seen whether or not their increased measures have a greater effect than their already-instituted domestic ban.

According to the South China Morning Post, the PBOC-affiliated article admitted that recent attempts to eradicate digital currencies by shutting down domestic exchanges haven’t worked as well as planned, quoting:

ICOs and virtual currency trading did not completely withdraw from China following the official ban … after the closure of the domestic virtual currency exchanges, many people turned to overseas platforms to continue participating in virtual currency transactions. Overseas transactions and regulatory evasion have resumed.

The Financial News’ article also spins the planned ban as being for the protection of the country’s citizens, stating:

Risks are still there, fuelled by illegal issuance, and even fraud and pyramid selling.

China has already banned ICOs and domestic cryptocurrency exchanges, but many eager investors inside the country have found workarounds. According to Donald Zhao, a Bitcoin trader who moved to Tokyo following China’s domestic ban, China’s new regulations might succeed in making it even harder for individuals to circumvent the law:

It is common for people to use VPNs [virtual private networks] to trade cryptocurrencies, as many exchange platforms relocated to Japan or Singapore … I think the new move literally means it would be even harder to circumvent the ban in China … people promoting related business programmes may be arrested.

Still, where there’s a will, there’s a way, and people who really want to trade cryptocurrencies will likely figure out how to do so in secret.


Though stricter regulations in China aren’t going to help the market recover any faster, it’s worth mentioning that other countries are set to benefit. According to Cathay Capital’s Ace Yang:

It’s positive news for Japan and Singapore, because demand for participating in trading is not diminishing and traders have got to go somewhere.

What do you think about China’s claim to increase measures against cryptocurrency trading? Do you think it will have any long-term effects, or is it just another case of FUD? Let us know in the comments below!

Images courtesy of Shutterstock, Bitcoinist archives.

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Led 31

South Korea Government ‘Will Not Ban Or Suppress’ Cryptocurrency – Minister

· January 31, 2018 · 6:30 am

South Korea’s government has confirmed it has “no intention” of banning or “suppressing” cryptocurrency trading in fresh comments on the industry.

‘No Intention To Ban’

In comments Wednesday quoted by Reuters, finance minister Kim Dong-yeon, who earlier in January said that a shutdown was still a possibility, finally ended apprehension surrounding the future of cryptocurrency trading in the country.

Kim had faced a 200,000-strong petition demanding he be fired from his position after the comments, which along with those by justice minister Park Sang-ki, sent shock waves through cryptocurrency markets and sparked public outrage.

South Korea won't ban crypto trading

“There is no intention to ban or suppress cryptocurrency,” he said.

The confirmation may come as less of a surprise to some, as Seoul moves forward with regulatory improvements to the exchange sector at breakneck speed in recent weeks.

In addition to tax and security obligations, an anonymous trading ban became law Tuesday, with exchanges now obliged to ensure account identities match those of bank accounts.

The pace of change is already causing teething problems, however, as Bitcoinist reported as the ban commenced that big-volume exchanges were finding it considerably easier to work with banks to stay compliant.

Conversely, smaller exchanges faced being cut off from the market through lack of compliance as banks failed to cope with demand. This, sources say, could see one million users caught out.

crypto exchange

Soeul Goes After Illegal Actors

Not just bonafide actors, but also the shadier side of South Korea’s trading market has caught the attention of regulators.

Customs in the country has announced it has uncovered “illegal foreign exchanges” involving cryptocurrency worth almost $600 million this week, with investigations ongoing.

The organization stated:

Customs service has been closely looking at illegal foreign exchange trading using cryptocurrency as part of the government’s task force.

Bitcoin prices have, meanwhile, stopped reacting to developments in South Korea’s regulation after Japan’s major hack and legal troubles at Tether stole the limelight.

What do you think about the latest developments in South Korea? Let us know in the comments below!

Images courtesy of Pxhere and Bitcoinist archives.

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Led 24

South Korea Fines 6 Exchanges For Security Law ‘Violations’

· January 24, 2018 · 8:30 am

Six major South Korea cryptocurrency exchanges have received fines of around 25 million won ($23,500) for lax security measures which “violated” laws.

6 Of 10 Exchanges Ordered To Pay

As local news media outlet Yonhap News Agency reports Wednesday, government officials will press forward with penalties in what some commentators view as an increasingly promising sign of bringing the domestic cryptocurrency industry under regulatory control.

“Although the size of transactions and the number of users are surging, overall user protection measures are insufficient,” the publication quotes the Korea Communications Commission (KCC) as saying.

South Korea

The decision to fine exchanges flouting the Information and Communications Act, which include well-known names such as Korbit, Coinone and Coinplug, follows a joint investigation into security setups at ten exchanges which several government agencies ran from October to December last year.

‘Tiny’ Fines

The move is the latest is Seoul’s ongoing bid to solidify the exchange market, having confirmed this week that anonymous trading would end January 30 and exchanges must pay tax on 2017 profits in full by April 30.

Reactions have been mixed, with native exchange users in particular sensitive following mass uproar resulting from the government’s handling of the issue over the past months.

Consensus appears to be similarly lacking on the fines, a KCC source telling Yonhap the amounts involved are “too low” and industry figures likewise voicing suspicions.

“I know there is an indication that the amount imposed on each operator is too low, but this measure imposes the maximum amount possible under current information and communication network law,” the official stated.

Nonetheless, security problems at Korean exchanges have received significant negative press amid rumors North Korea was stealing funds for its own ends on a regular basis.

Amid the suspicion, one media company hired white hat hackers to create and then compromise accounts on five exchanges, which it reports was successfully done with what it describes as “basic” tools.

What do you think about the South Korean exchange fines? Let us know in the comments below!

Images courtesy of Shutterstock, Twitter

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