60 cryptocurrency exchanges in South Korea will close all or some services this week - regulation
60 cryptocurrency exchanges in South Korea will close all or some services this week - regulation
The deadline for cryptocurrency exchanges and wallet operators to meet the new regulatory requirements in order to remain open in South Korea is this week. So far, only one crypto exchange has been licensed to continue the operation. It is expected that around 60 crypto exchanges either close or reduce the services.
60 crypto exchanges, which are expected to shut down or reduce services
According to the "Law on the Message and Using of Certain Financial Transaction Information (Special Act)", crypto exchanges for the information security management system (ISMS) must be certified and register with the South Korean Financial Intelligence Unit (FIU) by September 24. Crypto exchanges that do not do both have to set the operation on this date.
According to the local media, 34 exchanges have not received ISMS certification, so it is expected to be completely closed on September 24th.
A total of 29 crypto exchanges were ISMS certified, but only one has successfully registered with the FIU, a unit of the Financial Services Commission (FSC), the leading financial supervisory authority of the state.
The Financial Intelligence Unit held its first meeting to check the crypto business on Friday to check that of Dunamu Inc., the operator of Upbit, the country's largest crypto exchange. The examination board accepted the report and made upbit the first licensed crypto exchange operator of the state.
The FIU announced on Friday that in addition to Upbit, four other crypto stock exchange operators submitted a report: Bithumbit, Korbit, Coinone and Korea Digital Exchange (Flybit). In addition, a wallet operator, Korea Digital Asset (Koda), also submitted a report.
The FSC said:
Since there is still a week up to the 24th, providers of virtual assets that have not yet submitted a message should be reported immediately.
In addition, registered crypto exchanges that want to offer the trade in Korean WON must also work with banks in order to provide users with real names verified accounts. So far, only the largest stock exchanges in the country - Upbit, Bithumb, Coinone and Korbit - banking partnerships have secured. Due to risks such as money laundering, banks hesitate to work with smaller stock exchanges.
That means 25 of the 29 ISMS-certified crypto exchanges are pure crypto exchanges if you successfully register with the FIU. You have to hire the trade with Korean WON by September 24th and should have already informed your customers in accordance with the requirements of the financial supervisory authorities. Four companies - Gopax, GDAC, Hanbitco and Huobi Korea - stated that they are still working on securing bank partnerships until the cut -off date.
Currently only the four leading stock exchanges will continue to work out of 63 crypto exchanges. The rest will either shut down or reduce the services.
What do you think that all of these crypto exchanges must be concluded as part of the new regulation? Let us know in the comment area below.
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