South Korea’s financial watchdog today ordered a dozen cryptocurrency exchanges to update their adhesion contracts, which the agency claims causes problems for users in withdrawals, and generally puts the businesses way ahead of consumers on all levels.
South Korea Orders Exchanges to Revise Adhesion Contracts
The Republic of Korea Fair Trade Commission (KFTC), the country’s regulatory authority for economic competition, “ordered 12 cryptocurrency exchanges to revise their adhesion contracts, which largely fail to provide adequate protection for consumers,” according to Yonhap.
Consumer protection in South Korea is regulated under several acts, including the Consumer Protection Act, and also more specific acts, such as the Adhesion Contract Act, enacted December 31, 1986.
It was later updated for the internet age, and is known as The Act on Consumer Protection in Electronic Commerce (E-Commerce Act). Its charter provides a shield on the consumer side during online transactions. It’s the main law the KFTC is appealing to. The KFTC is also looking over standard terms and conditions guidelines, and these are enforced via the Regulation of Standardized Contracts Act (RSCA).
With the RSCA, the onus is on the business to disclose all benefits and responsibilities, including what is referred to in the US as the small print. The Korean Supreme Court ruled that the standard is “contractual terms that would typically affect a reasonable consumer’s decision to enter into a contract or how prices are set for the concerned transaction (for example, product warranty or disclaimer of liability).” […]