South Korea Regulator Moves to Close 59 Crypto Exchanges in the Country
Login

South Korea Regulator Moves to Close 59 Crypto Exchanges in the Country

Estimated Reading Time: 3 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:


In July, South Korea notified cryptocurrency exchanges and wallet operators to register with the FIU and comply with the new stipulated regulatory requirement before September 24 or risk getting shut down.

Reports show that only one crypto exchange has complied and received licensing to continue operations. That said, 59 cryptocurrency exchanges could go out of service or reduce their score of services.

Per the “Act on the Reporting and Use of Specific Financial Transaction Information (Special Act),” crypto exchanges must get certified by the Information Security Management System (ISMS) and register with the South Korean Financial Intelligence Unit (FIU) before September 24.

Local reports show that 34 exchanges have not received ISMS certification and could completely shut down by Friday.

Meanwhile, 29 crypto exchanges have received ISMS certification, but only one has registered with the FIU.

The FIU hosted its first crypto business review meeting last Friday to review the report submission from Dunamu Inc., the company behind the largest cryptocurrency exchange in South Korea, Upbit.

Meanwhile, the FIU added that four other crypto exchange operators, including Bithumb, Korbit, Coinone, and Korea Digital Exchange (Flybit), have submitted their reports. The regulator also noted that only one wallet operator, Korea Digital Asset (KODA), had submitted its report. The FSC added that:

“Considering that there is one week left until the 24th, virtual asset providers who have not yet filed a report should file a report promptly.”

Only Top Four Exchanges Will Operate as Normal in South Korea

Additionally, the regulatory authority noted that registered exchanges offering to trade in Korean won must partner with banks to provide customers with real-name verified accounts. So far, only Upbit, Bithumb, Coinone, and Korbit have secured partnerships with banks to fulfill the mentioned requirement. Reports show that Korean banks are skeptical about partnering with smaller exchanges due to fears of money laundering and other illicit acts.

That said, along the 63 crypto exchanges operating in South Korea, only the top four—Upbit, Bithumb, Coinone, and Korbit—will continue operations normally. The other 59 might have to either sit down or cut down services.

 

You can purchase crypto coins here: Buy Tokens

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News