South Korean Crypto Exchanges Are Delisting Altcoins In A Bid To Come Upon Banking Requirements

Various cryptocurrency exchanges in South Korea are continuing to delist additional altcoins (alternative coins) from their own respective platforms. This development takes place around the time when the deadline pertaining to the partnership with the banks comes closer.

Many of the country’s crypto exchanges had to delist the aforementioned altcoins if there was to be any hope of fostering a beneficial partnership with the banks. If a successful and mutually beneficial relationship can be created, it would allegedly be for the betterment of the nation, or so it is to be believed.

Exchanges to establish a partnership with the banks

As per the reports provided by one of South Korea’s media outlets, the country’s crypto exchanges have to take this measure in order to bolster the chances of the abovementioned successful partnership with the banks. The banks, in turn, are able to offer accounts with real names for various digital clients.

South Korean authorities had informed all of the country’s cryptocurrency exchanges that every crypto-related activity should be reported to the KoFIU (Korea Financial Intelligence Unit). In order to conduct the mandate, the crypto exchanges shall be required to work alongside the banks. If the exchanges choose not to partner up with the banks, then they could potentially be shut down.

In related news, it had also been revealed via a recent update provided by the nation’s government that the higher the diversified amount of altcoins available on any exchange, the more likely it would be that cyber-attacks and hacks could happen, in addition to the funds on the crypto exchange being utilized for illegal activities such as money laundering or terrorist financing.

Growing concern about the altcoins

During last month, the authorities had started to consider all of the different altcoins that were being added onto the various exchanges. The government is increasingly concerned about the sheer number of altcoins as not only does this represent a security risk, but there is also the danger of investors potentially trading with cryptocurrencies that have no intrinsic or practical value. 

In South Korea, cryptocurrency exchanges are allowed to add and remove any altcoin at any given time without gaining approval from the government. While this may be beneficial, it also adds the risk of investors potentially backing the wrong choice. Therefore, in an effort to rectify this issue, the previously mentioned partnership with the banks and the delisting of the relatively lesser used and known tokens had been carried out.

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