South Korean regulators are planning to shut down several crypto exchanges.

South Korea’s top financial regulator, the Financial Services Commission (FSC), is reportedly planning to shut down 11 cryptocurrency exchanges amid fraud allegations. According to the Korea Herald report, the FSC will suspend operations of at least 11 mid-sized crypto exchanges in South Korea due to alleged illegal activities and fraudulent collective accounts. The report cited anonymous industry sources claiming that the names of the exchanges were not yet disclosed.

Crypto exchanges may not get approval for operation by the FSC.

According to the report, the mentioned crypto exchanges will not be able to get approval for operation by the FSC. The report also notes that the financial regulator is planning to implement stricter regulations for smaller crypto exchanges in South Korea. The news on the alleged shutdowns comes amid several smaller South Korean crypto exchanges suspending operations recently due to new regulations. Local crypto exchange Bitsonic announced Friday on its official Telegram channel that it would temporarily halt operations, citing “internal and external issues.”

South Korea continues to push for strict regulations. 

South Korean crypto exchanges have recently been under stricter regulatory scrutiny as authorities have required local crypto service providers to register their businesses until September and set up real-name trading accounts and reporting. Local crypto trading platform CPDAX also said that it would entirely shut down operations as of Sept. 1. Previously, Darlbit exchange also reportedly terminated services after suspending deposit and withdrawal services last month. Larger cryptocurrency exchanges in South Korea have also been facing regulatory issues recently. According to Yonhap News, the Seoul Metropolitan Police Agency reopened an investigation into an alleged fraud case involving the former chairman of Bithumb, the largest crypto exchange in South Korea.