Challenges in Regulating Unregistered Exchanges and Reading Rooms

Although domestic financial authorities have cracked down on unregistered exchanges overseas, there are still many unregistered exchanges operating in reading rooms. “Reading rooms are generally viewed as ‘fraud,’ and while they can be punished, there are few cases where victims are compensated for their losses,” said Ohoon Kwon, partner attorney at Cha & Kwon Law Offices, adding, “It is also difficult to apply similar investment advice regulations because virtual assets are not considered ‘capital instruments’ under the Capital Markets Act.” 

URL : Challenges in Regulating Unregistered Exchanges and Reading Rooms