With the outbreak of the FTX exchange’s demise, the worldwide crypto market has been purposely impacted. According to studies, South Korea is the worst hit country as a result of the FTX exchange’s demise.
This poll was a direct outcome of the countries with the highest number of visitors to the FTX exchange. This directly translates to losses, as the greater the number of visits, the greater the losses should be.
As a result, only 297.2K visits from South Korea were recorded on the FTX exchange between January 2022 and October 2022.
Singapore comes in second with 241.7K, followed by Japan with 223.5K. With a significant impact on the country’s economy, South Korea begins an inquiry into all crypto exchanges based in South Korea, as well as registered ones.
Investigations in South Korea
Even a novice in the industry can now see that if an exchange’s native token collapses, so does the entire exchange. Indeed, this is the case with the FTX token crashing, resulting in the collapse of the entire FTX exchange.
As a result, native tokens have caused concern and are a crucial determinant in an exchange’s standing. Despite this, South Korea’s financial authorities, the Korea Financial Intelligence Unit (KoFIU), have begun to investigate and warn all Korean-based crypto exchanges about their local tokens.
The Flata exchange, a native exchange to the country, was the first to be bannedfor listing its native cryptocurrency.
Flats exchange listed the FLAT token, the platform’s native token, in January 2020. Indulging in many issues, thorough investigations into the Flata exchange are ongoing.
Major exchanges such as Bithumb and Upbit have presented all possible documentation to authorities and have been cleared.
However, in the case of FTX, South Korean authorities have completely blocked about $104.4 million in funds belonging to FTX co-founder Shin Hyun-Seong. This is because of unregistered LUNA sales profits.