2 cryptocurrency exchanges receive an order from the South Korea watchdog to update consumer contracts

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KFTC requires the exchanges to update their adhesion contracts to make withdrawals easier for users.

Self-regulation is a top agenda as twenty cryptocurrency exchanges voluntarily file to be regulated.

The South Korean regulator, Republic of Korea Fair Trade Commission (KFTC) has today “ordered 12 cryptocurrency exchanges to revise their adhesion contracts, which largely fail to provide adequate protection for consumers,” as reported by Yonhap.

The exchanges have been asked to review their adhesion contracts under the Consumer Protection Act which according to the regulator, are problematic during withdrawals. Yonhap reports that there are aspects of unfairness in the “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.”

The South Korea regulator has been very active and is taking the matter of consumer protection with extreme caution. Consequently, it is barely two weeks since a couple of crypto exchanges were raided by prosecutors after they were “suspected of buying Bitcoin with money stolen from customers’ accounts.” Lastly, about twenty crypto exchanges in the country have voluntarily filed to be evaluated in an effort to self-regulate.