The South Korean Fair Trade Commission recently sighted twelve crypto-exchanges to offer adhesion contracts which lack proper customer protection, and ordered them to make it more ‘consumer-friendly.’
Now, for those of you who don’t know, adhesion contracts are lists of terms and conditions created by an entity and are non-negotiable to the customer. The FTC has sighted that the contracts currently don’t provide customers the benefit of withdrawing their deposits and also limits user services. Furthermore, once a customer ends their membership with a crypto-exchange, unnecessary financial burdens fall upon them.
With the new change in the adhesion contracts, as demanded by the FTC, the market will become more transparent, and the investors, as well as the exchanges, will be able to operate in a more secure and organized framework.
South Korean is the third most active country in the international crypto market with the US and Japan taking first and second positions respectively. Just to keep things from getting out of hand, from last year, the South Korean government started to impose some tight regulations on its crypto-exchanges and activities. For example, ICOs have been totally banned from the country, and crypto exchanges are forced to follow strict rules if they wish to keep offering their services to clients.
Apart from this, about a week ago, the South Korean Ministry of Strategy and Finance explained about creating a taxation framework for cryptocurrencies, and it should take effect by June. This decision is a result of the G-20 summit which was held in Buenos Aires between March the 19th and the 20th.
All the G-20 countries suggested implementing a Financial Action Task Force (FATF) to monitor money laundering activities, which is the biggest concern revolving around cryptocurrencies.