The Financial Services Commission, South Korea’s primary financial regulator, is allegedly aiming to shut down a dozen local cryptocurrency exchanges.

Industry insiders stated Sunday that 11 mid-sized local cryptocurrency exchanges in Korea are closing down after the country’s finance authority recently discovered some of their unlawful actions, and tougher restrictions will be enforced to enable their commercial operations.

The reports of the suspected shutdowns follow the recent closures of numerous smaller South Korean crypto exchanges. Bitsonic, a local crypto exchange, stated on its official Telegram channel on Friday that it will temporarily suspend operations due to internal and external difficulties.

Most crypto exchanges, except for Upbit, Bithumb, Coinone, and Korbit, have failed to create authentic accounts for consumers, which is a need for company operation, according to industry analysts. Numerous mid-sized exchanges have also declared plans to discontinue their services or operations.

CPDAX, another local crypto trading site, has also announced that it would cease operations on September 1, Darlbit exchange had previously allegedly shut its operations after halting deposit and withdrawal services last month.

Related: 20% tax on Cryptocurrency in South Korea to reduce illegal projects

Meanwhile, Cho Myeong-hee of the People Power Party is pushing to prolong the reporting period for local exchanges open for operation until December 24. Financial officials, on the other hand, have stated that they are sticking to their initial goal to complete the process by September 24, citing the fact that they have already provided a six-month grace period since March.

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