Cryptocurrency exchanges in South Korea launch new services to diversify income

After tightening regulation of the crypto industry in South Korea, many local exchanges have closed. The remaining platforms are launching projects in the field of NFT, DeFi and “metaverse”.

Four cryptocurrency exchanges: Bithumb, Coinone, Korbit, Upbit, have been registered with local authorities. These trading platforms can provide any service to users, including exchanging Korean Won for cryptocurrency, subject to all regulatory requirements.

Realizing that the government is moving in the direction of toughening legislation for cryptocurrencies, exchanges are exploring new opportunities to reduce the dependence of income on cryptocurrency trading fees. Trading platforms
launchingt various financial services for users in the field of NFT, DeFi, metaverse and other trending areas.

1. Korbit offers companies NFT-based services to enhance the protection of legal entities’ intellectual property. The site recently launched the Korbit Town metauniverse, where users can chat and donate in cryptocurrencies.

2. Bithumb is set to launch Bithumb Live, a multi-commercial platform combining NFT, cryptocurrency payment system, metaverse and online trading.

3. The Coinone exchange has launched the DeFi Coinone Plus service, which provides cryptocurrency staking services to investors.

Lee Byung-uk, professor at the Seoul School of Integrated Science and Technology (Assist), believes that this is a natural reaction to what is happening in the market.

“The regulation of the cryptocurrency market has always been of great concern to exchanges. The struggle to survive is a natural response. The market is unstable now, but it will be forced to obey the rules more. ”

The remaining 25 exchanges that have failed to comply with Know Your Customer (KYC) compliance are working to comply with regulatory requirements.

We will remind that recently the Minister of Finance of South Korea Hong Nam-ki announced that the law on income tax on cryptocurrencies will come into force on January 1, 2022. In this case, the requirements for NFT will be excluded from the legislation. At the same time, potential candidates for the presidency of South Korea are interested in postponing the introduction of income tax on cryptocurrencies.