Over 60 South Korean cryptocurrency exchanges will close next week
More than 60 crypto exchanges in South Korea are going to close for a week and they have little or no time to let their users know, so read more on our latest crypto news.
South Korean cryptocurrency exchanges that fail to meet the Financial Intelligence Unit’s registration rules must inform their clients a week before September 24th that they will close all operations. More than 60 Korean exchanges will do just that, and they have been directed to inform their clients on how to provide details about their withdrawal options. The Korean Financial Services Commission said:
“If some or all of the services need to be closed, (cryptocurrency exchanges) should give customers at least seven days’ notice of the expected closing date and withdrawal procedures. Close the door.”
Keep in mind that the Korean regulator has ordered all digital asset exchanges operating in the country to comply with anti-money laundering regulations by registering with the FIU or risking website blocking if they fail to do so in a timely manner. Part of registration requires exchanges to work with banks to obtain accounts for name verification, and trading platforms must obtain security documents from the Internet Security Authority.
Exchanges that receive a security certificate are still allowed to offer some services to Koreans, but platforms in this category are not allowed to make payments with the official Korean fiat currency. Only four exchanges in South Korea such as Upbit, Bithumb, Coinone and Korbit have met all of the regulatory agency registration requirements. Reuters noted that about 40 exchanges have announced that they will all be discontinuing their services as they are required to comply.
Another 28 trading platforms such as Cashierest, Flybit and ProBit already have security certificates that allow them to continue operating in the country without making profit-related payments. As reported by teh, smaller exchanges have problems partnering with banks as most regulators and institutions have chosen not to partner with crypto-related companies due to the risks, hacking and accountability involved.
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