60 Cryptocurrency Exchanges in South Korea to Shut Down All or Some Services This Week – Regulation Bitcoin News

The deadline for cryptocurrency exchanges and wallet operators to meet the new regulatory requirements to stay open in South Korea is this week. So far, only one crypto exchange has been licensed to continue operations. Around 60 crypto exchanges are expected to either close or reduce services.

60 Crypto Exchanges Expected To Shut Down Or Reduce Services

According to the “Law on Reporting and Use of Certain Financial Transaction Information (Special Law)”, crypto exchanges must be certified for the Information Security Management System (ISMS) and register with the South Korean Financial Intelligence Unit (FIU) by September 24th. Crypto exchanges that don’t do both will have to cease operations on that date.

According to local media, 34 exchanges have not received ISMS certification, so they are expected to close completely on September 24th.

A total of 29 crypto exchanges have been ISMS certified, but only one has successfully registered with the FIU, a unit of the Financial Services Commission (FSC), the country’s leading financial regulator.

The Financial Intelligence Unit held its first crypto business review meeting on Friday to review the report submitted by Dunamu Inc., the operator of Upbit, the country’s largest crypto exchange. The audit committee adopted the report, making Upbit the first licensed crypto exchange operator in the country.

The FIU further announced on Friday that four other crypto exchange operators in addition to Upbit have submitted a report: Bithumb, 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 one week left until the 24th, providers of virtual assets who have not yet filed a report should report a report immediately.

In addition, registered crypto exchanges that wish to offer Korean won trading must also work with banks to provide verified accounts to users with real names. So far, only the country’s largest exchanges – Upbit, Bithumb, Coinone, and Korbit – have secured banking partnerships. Due to risks such as money laundering, banks are reluctant to partner with smaller exchanges.

This means that 25 of the 29 ISMS-certified crypto exchanges are pure crypto exchanges if they successfully register with the FIU. They must stop trading Korean won by September 24th and should have informed their customers according to the requirements of the financial regulators. Four companies – Gopax, Gdac, Hanbitco, and Huobi Korea – said they are still working on securing banking partnerships by the deadline.

Currently, of 63 crypto exchanges, only the four leading exchanges will continue to operate as usual. The rest will either shut down or reduce services.

What do you think of all of these crypto exchanges having to be closed under the new regulation? Let us know in the comment section below.

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source https://www.bisayanews.com/2021/09/21/60-cryptocurrency-exchanges-in-south-korea-to-shut-down-all-or-some-services-this-week-regulation-bitcoin-news/