In a move to enhance the customer protection towards their invested assets, The South Korean Regulatory Agency – The Fair Trade Commission (FTC) has reportedly asked 12 crypto exchange to revise their user agreements.
As reported by the South Korean news agency Yonhap, the regulatory officials have found that the exchange operators have failed in their duties to provide sufficient consumer protection in the adhesion contracts also referred to as the ‘boilerplate’ contracts.
Adhesion contracts are the ones where the weaker party is left with little choice in a ‘take it or leave it’ sort of scheme drafted by the business. The Korean news agency says that the Fair Trade Commission (FTC) found that 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 latest move by the FTC indicates the latest measures taken by the country’s regulatory body to police the existing crypto exchange ecosystem. Moreover, another set of reports also show that South Korean regulators are investigating regarding the anti-money laundering controls of the banks which do business with the exchanges.
Following the early crackdown on since the start of 2018, the exchanges are seen to be taking several customer-friendly approaches while still remaining under the ambit of the regulatory laws. In one such move, the Kakao-backed cryptocurrency exchange Upbit launched a system rewarding its users for identifying fraudulent multi-level schemes related to digital currencies.