11 cryptocurrency exchanges are to close their doors in South Korea as a result of an audit by the Financial Services Commission (FSC), the Korea Herald has reported.
According to the publication, these platforms have been used to run fraudulent schemes. It should be noted that the list of exchanges to be shut down is still unknown.
Over the past three weeks, three South Korean cryptocurrency exchanges have already announced their closure - Darlbit, CPDAX and Bitsonic.
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Last July 26, it was known the country's authorities are going to start confiscating cryptocurrencies. South Korean regulators have proposed amendments to the current legislation with the aim of being able to confiscate cryptos from citizens who evade taxes on transactions with digital assets.
In May, the South Korean authorities approved a plan aimed at introducing a 20% tax on profits from crypto trading. This will affect citizens who earned more than 2.5 million won ($2,000) a year with the help of cryptocurrencies. Income below this amount is not subject to taxation. The new rules will come into force next October 1.