The increased regulatory scrutiny that befell South Korea’s cryptocurrency space in recent times appears to have extended to include exchange tokens.
Exchange tokens are tokens issued by a cryptocurrency exchange that usually offer some benefit to the holder, either through reduced trading fees, regular token burns or other means.
According to a report by Arirang on Thursday, cryptocurrency exchanges are being prohibited from handling any coins or assets issued by themselves. The law also extends to any assets issued by family members, spouses or distant relatives, and is expected to come into effect on June 26.
Businesses which fail to comply with the new regulations could have their operations suspended and face fines of up to $88,000.