Last week, several false exchanges of cryptocurrency were exposed by the local Bitcoin community and the financial authorities. One of the fake exchanges was BitKRX, named Korea Exchange (KRX), the largest financial trading platform in South Korea established by KOSDAQ, South Korea Futures Exchange and South Korea Stock Exchange.

The BitKRX Exchange a branch of KRX, engaging users in its platform by promoting its activities as a regulated and legitimate business run by KRX.

<img alt=" KRX "src =" http://cointelegraph.com/storage/uploads/view/a00944df1d3b36dc1fe8aa0ac798cd00.png "title =" KRX "/>

Chosun, l 39 one of the main South Korean media reported that local financial authorities and law enforcement agencies have cracked down on cryptocurrency trading, specifically local financial authorities have revealed that cryptocurrency in South Korea are not regulated, but operate as legitimate businesses using the branding of major financial corporations.

A member of the South Korean Bitcoin community told Chosun:

"A small group of individuals who are unskilled and experienced enough to handle high traffic and large-scale platforms perform cryptocurrency swaps on the lo market cal. As a result, traders are not able to properly execute buy and sell orders in a timely manner, resulting in significant losses and difficulties for investors. Strict regulation of the market by the South Korean market will further stabilize the local cryptocurrency market. "

Optimistic Regulations

Earlier this week, the largest South Korean cryptocurrency changes Bithumb, which is also the second largest trading platform on the market Global Cryptocurrency, said that a good set of regulations for businesses and investors would fuel the cryptocurrency market and facilitate its exponential growth.Bithumb says:

"A good set of regulations will rather favor the market (virtual currency), and we would accept that. "

For cryptocurrency exchanges such as Bithumb, Korbit and Coinone, which deal daily with billions of dollars in Transactions, regulations are needed because a fairly large portion of investors in the South Korean cryptocurrency market are victims of Ponzi schemes and scams. [1 9459006]

This month, a $ 200 million cryptocurrency-inspired Ponzi scheme has been unraveled through the application of local law. 14 people from MiningMax, a mining Ponzi scheme, have been arrested by South Korean police with several charges, including economic crimes and frauds.

According to CryptoCompare, the South Korean cryptocurrency market 4.6% of the global cryptocurrency market, behind the United States, Japan and Europe.

A $ 200 million Ponzi scheme on a relatively small market can be avoided if investors directly trade cryptocurrencies.