14 Faux Bank Accounts Used for Crypto Exchanges Exposed by South Korean Financial Services Commission

The Financial Services Commission has discovered 14 fake accounts used by cryptocurrency exchanges in South Korea, in the midst of a widening regulatory crackdown on trading platforms.

A study of accounts that collect virtual assets including withdrawal and deposit accounts to which more than 3,000 financial institutions were subjected bore the discovery of the fake accounts, according to a Hankyoreh report.

Information disclosed by the investigation stipulated that of the 94 accounts that were operated by 79 virtual asset operatives, 14 were fake. The Financial Services Commission stated that the widening regulatory crackdown on trading platforms after the most recent unraveling will produce more rigid measures such as the suspension of the fake accounts as well as prosecution.

The revelation of these fraudulent accounts by regulators has reignited calls for customers to be cautious since exchanges are expected to shut down ahead of the deadline for trading platform reporting on the 24th of September.

Ever-changing Shades of Exchange Upheaval

Regulators around the world are burdened by the challenge presented by trading platforms which encompass the infamous channels of digital currency exchange.

In response to several requests by watchdogs, Binance has reduced its margin leverage from 125x to 20x in order to protect customers from the risks of trading or investing in digital assets.

Binance Markets Limited, a UK-based subsidiary of Binance, has been prohibited from engaging in any regulated exchange activity in the nation.

Other exchanges globally too are responding to new laws on a regular basis, as regulators work to protect users from the innate risks of cryptocurrency. Hence, Binance UK, the exchange’s more regulatory-compliant spinoff, is being considered.

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