South Korea’s high monetary regulator, the Monetary Companies Fee, is reportedly planning to close down a dozen native cryptocurrency exchanges amid fraud allegations.

The FSC will droop operations of at the very least 11 mid-sized crypto exchanges in South Korea on account of alleged unlawful actions and fraudulent collective accounts, native information company The Korea Herald reported Sunday. The publication cited nameless business sources claiming that the names of the exchanges weren’t but disclosed.

The sources argued that the talked about crypto exchanges won’t be able to get approval for operation by the FSC. The report additionally notes that the authority is planning to implement stricter rules for smaller crypto exchanges in South Korea.

The information on the alleged shutdowns comes amid a number of smaller South Korean crypto exchanges suspending operations just lately. Native crypto trade Bitsonic introduced Friday on its official Telegram channel that it will quickly halt operations, citing “inner and exterior points.”

One other native crypto buying and selling platform, CPDAX, additionally stated that it will fully shut down operations as of Sept. 1. Beforehand, Darlbit trade additionally reportedly terminated providers after suspending deposit and withdrawal providers final month.

The FSC didn’t instantly reply to Cointelegraph’s request for remark.

Associated: South Korea to take action against unregistered crypto exchanges

South Korean crypto exchanges have been below stricter regulatory scrutiny just lately as authorities have required native digital asset service suppliers to register their businesses until September and arrange real-name buying and selling accounts and reporting. Significantly, smaller- and medium-sized crypto exchanges have been reportedly struggling to safe licenses from acceptable authorities, versus main crypto exchanges like Upbit, Bithumb, Coinone and Korbit.

Bigger cryptocurrency exchanges in South Korea have additionally been going through regulatory points just lately, nonetheless. In accordance with Yonhap Information, the Seoul Metropolitan Police Company Monday reopened an investigation into an alleged fraud case involving the previous chairman of Bithumb, the biggest crypto trade in South Korea.