Altcoin News: Study: 97% of South Korea’s Cryptocurrency Exchanges Threatened with Bankruptcy
A survey by Business Korea revealed that 97% of cryptocurrency exchanges in South Korea are at risk of bankruptcy.
According to a report prepared by one of the most famous business and financial media in South Korea, only five or six cryptocurrency exchanges of the country are in the top 100 global platforms, and therefore many are not able to generate turnover or receive transaction volumes comparable to larger global platforms.
The fact that so many exchanges are experiencing difficulties is beginning to have a negative impact on the development of the cryptocurrency industry in the country, and many Korean startups prefer to work abroad, according to the publication.
It is also worth noting that South Korean exchanges were the main target for attacks by hackers from the DPRK, as confirmed by a recent UN report. According to experts, South Korea took the brunt of the attack, bearing 10 attacks. Researchers note that the South Korean exchange Bithumb was hacked by hackers at least four times. In July, the South Korean Ministry of Justice reported that financial damage from crime related to cryptocurrencies amounted to about $2.28 billion between July 2017 and June 2019.
Difficulties in the work of exchanges may be associated with rather strict regulation of their activities in the country. At the end of last month, information appeared that the four largest South Korean exchanges were faced with tightening bank requirements, and last week the South Korean regulator announced that he would directly control the operation of cryptocurrency exchanges.
Author: Marko Vidrih