South Korea’s financial watchdog today ordered a dozen cryptocurrency exchanges to update their adhesion contracts, which the agency claims causes problems for users in withdrawals, and generally puts the businesses way ahead of consumers on all levels.
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South Korea Orders Exchanges to Revise Adhesion Contracts
The (KFTC), the country’s regulatory authority for economic competition, “ordered 12 cryptocurrency exchanges to revise their adhesion contracts, which largely fail to provide adequate protection for consumers,” according to Yonhap.
Consumer protection in South Korea is regulated under several acts, including the Consumer Protection Act, and also more specific acts, such as the Adhesion Contract Act, enacted December 31, 1986.
It was later updated for the internet age, and is known as The Act on Consumer Protection in Electronic Commerce (E-Commerce Act). Its charter provides a shield on the consumer side during online transactions. It’s the main law the KFTC is appealing to. The KFTC is also looking over standard terms and conditions guidelines, and these are enforced via the Regulation of Standardized Contracts Act (RSCA).
With the RSCA, the onus is on the business to disclose all benefits and responsibilities, including what is referred to in the US as the small print. The Korean Supreme Court ruled that the standard is “contractual terms that would typically affect a reasonable consumer’s decision to enter into a contract or how prices are set for the concerned transaction (for example, product warranty or disclaimer of liability).”
Charges of Unfairness
“According to the Fair Trade Commission,” continues, “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.”
South Korean cryptocurrency exchanges have been very active of late. Huobi has in South Korea, facilitating “the trading of 100 cryptocurrencies and 208 markets.” In terms of regulation, these pages also how the “Kakao-backed cryptocurrency exchange Upbit has launched a system to reward users for identifying fraudulent multi-level schemes related to cryptocurrencies.”
Just within the last two weeks, however, three exchanges were raided by prosecutors who they “suspected of buying bitcoin with money stolen from customers’ accounts,” News.bitcoin.com . This happened roughly a month after over “twenty cryptocurrency exchanges in South Korea have agreed to voluntarily undergo evaluations” in a broader effort to better .
Do you think South Korean exchanges are over-regulated? Let us know what you think in the comments below.
Images via Pixabay.
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Ripple News Update
Last week, falling XRP prices drowned out what we consider a pretty important announcement: namely, that Uphold, Inc. added XRP functionality to its online platform.
For the uninitiated, this means that U.S. investors can buy XRP straight from U.S. dollars. No more waiting for a USD/BTC transfer. No more going to shady exchanges. Uphold allows XRP conversion to 34 different currencies in mere seconds. (Source: “XRP Ecosystem Grows with New Listing on Uphold,” Ripple, March 29, 2018.)
That’s a game-changer.
“The XRP ecosystem is diversifying.
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bitcoin Press Release: Skycoin showcase Skycoin Fiber, a growth released by Skycoin that will certainly deal with the basic problems with the current blockchains. April 03, 2018, Shanghai – – Historically, distributed ledgers have been really tough to maintain as well as run, yet due to the advancements of blockchain technology they are quickly obtaining extensive use and utility. Operators, […]
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Released at Tue, 03 Apr 2018 19:03:53 +0000
