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12 cryptocurrency exchanges ordered to revise unfair adhesion contracts

All Headlines 12:00 April 04, 2018

SEJONG, April 4 (Yonhap) -- South Korea's corporate watchdog said Wednesday it has ordered 12 cryptocurrency exchanges to revise their adhesion contracts, which largely fail to provide adequate protection for consumers.

According to the Fair Trade Commission (FTC), existing guidelines unfairly bar users from withdrawing their deposits, or limit their services to users, and force users to shoulder all financial losses when they secede from membership.

Cryptocurrencies like bitcoin and ethereum have rapidly gained popularity among South Korean investors hoping to make a quick return.

Despite a boom in cryptocurrency transactions, the exchanges have gone largely unregulated in South Korea, as they are not recognized as financial products since the country has no rules for protecting virtual currency investors.

Since Jan. 30, trade in cryptocurrencies has only been allowed using real-name bank accounts in South Korea. The rules are intended to reduce the room for cryptocurrency deals to be exploited for illegal activities such as money laundering and tax evasion.


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