How much money do you need to open a cryptocurrency exchange in South Korea? It is around 150 million won. You need only one operator to run the exchange. You can become the CEO of the exchange while you are working as the operator.
How long does it take to develop the platform you want? It takes less than two months after placing orders.
As Korea has no regulation on the exchange, anyone can open the exchange.
Many exchanges showed problems. Purebit CEO hid after illegally withdrawing cash from investors. Coin prices rose and fell several tens of thousands of times in a day. Exchanges suspended business for the repeated breakdown of computer services. Investors reported frustration over their cash deposit and withdrawal. Domestic cryptocurrency exchanges remain exposed to hacking.
At the center of these problems are suppliers of platforms for the exchanges. One supplier provided computer platforms and solutions to 40 currency exchanges.
At least 30 technicians are necessary to run a trustworthy and normal cryptocurrency exchange. A reliable exchange may need personnel for managing and upgrading sites, managing digital wallets and nodes, programming data for newly listed coins, managing servers capable of withstanding excessive trading.
However, many exchanges run a business without such a workforce. Thus it is not surprising that many exchanges report server breakdown, hacking, and other technical glitches.
It is impossible for investors to check how well cryptocurrency exchanges are running. The government keeps cryptocurrency exchanges out of their regulatory radar.
Lawmaker Kim Sun-dong of the main opposition Liberal Korea Party recently proposed a bill on the digital asset transaction act. He said a cryptocurrency exchange needs more than 3 billion won of capital and adequate computer software system before it gets a license from the Financial Supervisory Services.