Today is the deadline for registering cryptocurrency exchanges in South Korea. According to the regulator, only 10 exchanges have applied for registration and another 18 sites will do so today.
According to a notice on the website of the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC) of South Korea, as of the morning of September 24, only 10 of the 63 cryptocurrency exchanges in the country have registered with local governments. The deadline for filing an application for registration expires today, and the exchanges not approved by the regulator will have to close.
Recall that on March 25, amendments to the Financial Institutions Reporting Act (FTRA) came into force, which require exchanges to obtain a special license to comply with the rules for combating money laundering (AML) and the separation of their own and client assets, with the obligatory maintenance of bank accounts. country.
Exchanges Five, Gdac, Graybridge, OK-BIT, Prabang, and Flat Thai X filed applications yesterday alongside Gameper’s custodian. Only the four largest exchanges in the country – Upbit, Bithumb, Coinone and Korbit – have entered into deals with banks for servicing accounts with mandatory identification of the person.
According to CoinDesk Korea, exchanges Gopax, Huobi Korea and Gdac, which have been negotiating with banks until the last minute, have failed to secure partnerships and will stop trading in pairs with the South Korean won tonight. On Thursday, ProBit and Problegate did the same.
According to Yonhap, another 18 exchanges will apply for registration today, and 35 sites have not indicated their position regarding registration in any way and are likely to close. Recall that in August, Binance limited its presence in the country, and this month, Bybit and BitMEX followed suit.
Additionally, Bybit and BitMEX have removed Korean language support from their platforms. The FIU said the exchange’s support for the Korean language will be considered when deciding whether it can offer services in the country.
According to industry experts, the closure of most of the small exchanges in South Korea due to the new regulation could lead to the destruction of forty-two “Kimchi cryptoassets” worth $ 2.6 billion.
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