Categories: Payment system news

Over 60 South Korean Crypto Exchanges to Shut Down Next Week

South Korean cryptocurrency exchanges that cannot meet up with the Financial Intelligence Unit (FIU) registration exercise are mandated to inform their customers before midnight today that they will be shutting down operations a week before the September 24, 2021 deadline.

The affected trading platforms have been instructed not only to inform their customers that they will be halting operations, but they will also need to provide detailed information about how their users can withdraw their funds.

“Should some or all services need to be closed, (cryptocurrency exchanges) should notify customers of the expected closing date and procedures to withdraw money by at least seven days before the closure,” South Korean Financial Service Commission (FSC) said in a statement published by Reuters today.

Compulsory AML Registration

Recall that the South Korean regulator instructed all digital asset exchanges operating within its regulatory purview to comply with its anti-money laundering (AML) rules by registering with the FIU or risk having their websites blocked if they fail to do so before the September 24 deadline.

Part of the registration exercise required exchanges to partner with banks to obtain accounts for real-name verification. Crypto trading platforms also have to get a security certificate from the Internet Security Agency.

Exchanges that obtain only the security certificates will be allowed to continue offering only a few services to South Koreans. However, platforms in this category will be prohibited from conducting settlements in the country’s official fiat currency – won.

Four Exchanges to Continue Offering Full Services

Of all the exchanges operating in South Korea, only four such as Upbit, Bithumb, Coinone, and Korbit have successfully completed all the registration requirements of the FIU.

Reuters noted that nearly 40 exchanges have disclosed that they will be suspending all their services as they are yet to comply with the registration requirement.

28 trading platforms, including ProBit, Cashierest, and Flybit, have already secured security certificates, which will enable them to continue operating in the country without making won settlements.

According to reports, smaller exchanges had issues partnering with banks because most traditional financial institutions chose not to collaborate with these crypto-related firms due to accountability and hacking risks.

superadmin

Recent Posts

Ethereum’s RWA Dominance Slips as Solana, BNB Chain, Stellar, and Avalanche Gain Ground: Data

The RWA market is evolving rapidly, according to a new report shared today by institutional…

2 hours ago

Ripple’s XRP Risks Losing Spot Among Top 10 Cryptos by 2030 Unless This Crucial Shift Happens, Pundit Warns

Ripple-linked XRP may be one of the biggest names in the cryptoverse today, but its…

1 day ago

Billionaire Investor Chamath Palihapitiya Says Bitcoin Will Eventually Be Hacked by AI and Go to Zero

The debate over whether Bitcoin’s hashing algorithm can be hacked continues to evolve. This time,…

1 day ago

Cardano Foundation Pushes Back on New MiCA Rules for DeFi and Staking

The Cardano Foundation has urged the European Commission not to broaden the Markets in Crypto-Assets…

1 day ago

“1% of Global Capital Being Invested in Bitcoin Would See a Price of About $275,000,” Market Expert Reveals

Matt Crosby, a research director at Look Into Bitcoin, said in a recent interview that…

1 day ago

Cardano Gains 1.7M New Traders Thanks to Pump.fun Integration Amid Midnight’s 2027 Block Production Shift

Cardano could be heading toward a fresh wave of adoption as market analyst Lana Valentis…

2 days ago