South Korean cryptocurrency exchanges that fail to comply with the registration requirements must suspend their services after 24 September. Moreover, the registered trading platform that did not secure banks’ partnerships will not trade in won.
Over sixty South Korean crypto exchanges have to notify their users of a full or partial trading suspension by midnight today, Friday. That is one week before the new industry regulations go into effect.
Exchanges need to register with FIU (Financial Intelligence Unit) by 24 September, providing safety certificates from the internet agency to operate in the South Korean market. Also, the crypto exchanges have to partner with financial institutions to ensure that customers have real names on their accounts.
Exchanges that fail to adhere to the registration will have to suspend their trading services after 24 September. Meanwhile, platforms that acquired the registration by did not partner with banks will not access won trading.
Early on the week, the Financial Service Commission announced that exchanges have to notify clients of the anticipated closing date and the procedure to cash out their funds at least one week before the expected partial or complete closure.
Nearly 40 cryptocurrency exchanges might have to exit the market. Nevertheless, 28 trading platforms acquired security services but failed to secure a partnership with banks. Only four crypto exchanges have the bank partnership and certificates needed by South Korean regulators. They include Korbit, Coinone, Upbit, and Bithumb, and they can access won settlements.
Some smaller crypto exchanges such as Flybit, Cahierest, and Probit already admitted that they would suspend won trading activities. Moreover, they will operate with digital asset trading until they secure banks partnerships.
Keep in mind that most cryptocurrency platforms have found it challenging to comply with the new regulations in the South Korean financial market. That way, most of them may have to exit this market. To avoid losses, users need to confirm the withdrawal procedures with their respected brokers as early as today.
Governments across the globe have been keen on regulating the financial markets recently. That is due to the dangers related to this sector, including money laundering. Feel free to share your thought on this subject.