South Korea Bans Native Tokens of Exchanges!

South Korea Bans Native Tokens of Exchanges!
  • KoFIU investigates all crypto exchanges for native tokens.
  • South Korea is the worst affected country in the world due to FTX downfall.
  • South Korea blocks $104.4 million from FTX Co-founder Shin Hyun-seong.

With the outbreak of the downfall of FTX exchange, has indeed created a huge impact upon the global crypto market deliberately. In this sense, according to surveys, the worst affected country due to the passing down of the FTX exchange is South Korea.

This survey was indeed a direct result from the countries with the most visitors upon the FTX exchange. This directly transponders to the losses, as the more the number of visitors, the more ought to be the losses. Accordingly, about 297.2K visits have been registered upon the FTX exchange between January 2022 to October 2022, only from South Korea. 

The next in line accounts to Singapore with 241.7K, followed by Japan with 223.5K. With a huge impact affecting the country’s economy, South Korea initiates through investigation upon all crypto exchanges based on South Korea, and registered ones too. 

South Korea’s Investigations

It’s now clearly evident to even a novice in the industry that if the native token of an exchange collapses, so does the entire exchange itself. Indeed, this is the case with what we all have witnessed with FTX token crashing, thereby collapsing the entire FTX exchange. 

And so, native tokens have indeed brought about a fear, and are a major factor for the status of an exchange. In spite of all this, South Korea’s financial authority, the Korea Financial  Intelligence Unit (KoFIU) has started to investigate, and give notice to all the korean based crypto exchanges in regards to their native tokens. 

The first one in line to be detained for listing their native token, is the Flata exchange, which is a native exchange to the country. In January 2020, Flats exchange listed the FLAT token, which is the platform’s native token.  Indulgence with many issues, thorough investigations are ongoing upon the Flata exchange. 

Major exchanges such as the Bithumb, and Upbit have presented themselves with all possible  documents to the authorities, and have been cleared off. However, with the FTX issue, the South Korean authorities have completely blocked about $104.4 million of FTX co-founder, Shin Hyun-seong. This has been as a result of unregistered LUNA sales profits.

A Project Engineer by profession, a writer by passion. Especially into the critics and skeptics on cryptocurrency. His fascination towards the crypto world and his personal experience on it has made him a writer with a taste.