Korean FTC asks a dozen of Cryptocurrency Exchange to review Customer Contracts
Every responsible nation is taking strict actions against the Cryptocurrency frauds and trying to mitigate the number of same. To participate in the race, Fair Trade Commission (FTC) of South Korea has given orders to around dozens of Cryptocurrency exchanges to revise their customer’s or client’s contracts.
The current contracts are asked to be tore-off as they are based on ‘boilerplate’ concept that follows the conviction that the weaker party in the agreement has lesser rights and they are left with only one statement: ‘Take it or Leave it.’ The client’s or customer’s contract is signed by them at the time registration at Exchange operators.
According to the FTC, the Cryptocurrency exchanges do not allow its customers to access the regular withdrawals from the account. Also, because of some crypto exchanges, the customers have to bear heavy financial loses at the time of termination of membership of cryptocurrency exchanges. That is how Korean FTC fails to keep the sufficient protection when it comes to cryptocurrency exchanges in the matters related to leases, mortgages, insurances, and other contracts of adhesion.
The FTC authority chairman, Kim Sang-Joo understood the need to develop precautionary actions against Crypto exchanges nuances. He called the regulatory authority to control the nuances in January mid, this year. There was a speculation regarding the complete ban on cryptocurrency during the time when the justice ministry of Korea confirmed that it was preparing the legislation to end the cryptocurrency along with the shutdown of Cryptocurrency in the Korean Market. But this time the statement is made by the President of Korea to remove the fear of shutting down cryptocurrency.
Complete Shutting down of Cryptocurrency exchanges is not possible. “The Government doesn’t have any right to shut down the trading platform of cryptocurrency on the basis of electronic commerce law.” According to Kim.
Financial authorities of Korea has decided to keep a check on anonymous crypto trading platforms among domestic exchanges from January 30th onwards.