South Korea is suspending over 60 crypto exchanges and rolling out requirements should these exchanges want to continue. The cryptocurrency exchanges should notify their customers of partial or full suspension a week before the new regulations start.
Crypto Exchanges Required to Register
According to the post on SlashDot, in order to continue operations, these crypto exchanges should register along with the Financial Intelligence Unit before September 24, 2021. The exchanges are also required to provide a security certificate coming from the internet security agency.
They should also partner up with banks in order to help ensure real-name accounts. The crypto exchanges that have reportedly not yet registered must shut down their services come September 24. Those that have registered but have still failed to get partnerships with banks will also be prohibited from trading in won.
South Korea Crypto Exchanges
In a previous report, it was even noted that South Korean crypto exchanges could actually sue the government for alleged "unconstitutional" banking requirements. As of the moment, however, since these crypto exchanges are already required to secure a banking partner, it seems like the move was not successful.
The Financial Services Commission noted that should some or even all services need to close down, the crypto exchanges should notify customers of the expected date to close and procedures for them to withdraw their money before the actual closure. The Financial Services Commission noted that the notification had to be done before the end of September 17, 2021.
60 Crypto Exchanges Affected
The story from Reuters notes that over 60 crypto exchanges in South Korea should notify their customers of either their partial or full suspension a week before the regulations come into effect. It was noted that of all of these cryptocurrency exchanges, there would be nearly 40 that are all set to suspend all services.
It was noted that 28 have already been able to get security certificates but still have not yet been able to secure bank partnerships. Only four crypto exchanges have been successful, namely Bithumb, Upbit, Coinone, as well as Korbit. South Korea has already been looking towards banning cryptocurrency trading as early as 2018, which, although it did not become too successful, still had a significant impact on the prices of Bitcoin, and even Ethereum as well.
Only Four Companies Successful
These four companies were the few successful companies that have been able to get their own company registered while also being able to secure partnerships with the banks. This will not only allow the companies to make won settlements but also allow these crypto exchanges to continue their function in South Korea.
Some of the smaller exchanges, which include Cashierest, ProBit, and even FlyBit, have noted that they will be ending won trading. It was noted that they will still continue operations that involve only digital coin trading until they are able to secure partnerships with the South Korean banks.
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Written by Urian B.