The deadline for cryptocurrency exchanges to meet the requirements to continue operations under new crypto regulations in South Korea is rapidly approaching. An overall of 28 cryptocurrency exchanges have supposedly been cleared by the regulators to stay open. However, only four crypto exchanges have met the requirements to offer trading in Korean won.
28 Cryptocurrency Exchanges Meet Regulatory Requirements
South Korea’s monetary authorities have launched a list of 28 cryptocurrency exchanges that have met the regulatory requirements to remain open past Sept. 24 under the country’s new crypto regulations.
The modified Act on Reporting and Using Specified Financial (*28*) Information needs cryptocurrency exchanges to acquire Information Security Management System (ISMS) accreditation by Sept. 24 and report to the Financial Intelligence Unit (FIU), a division of the Financial Services Commission (FSC). Crypto exchanges that fail to do so must cease operations by Sept. 24.
Jeon Yo-seop, head of FIU’s Planning and Coordination Office, discussed that offered the approaching due date:
It is unlikely that there will be additional certified virtual asset trading platforms.
The 28 exchanges that have been ISMS-certified consist of Gopax, Upbit, Korbit, Coinone, Bithumb, Hanbitco, Casherest, Tennten, Dove Wallet, Flybit, Gdak, Aprobit, Huobi, Coin&coin, Probit, Borabit, Coredax, and Okbit.
However, in order for crypto exchanges to offer trading in Korean won (KRW), they must also partner with banks to offer customers real-name verification deposit/withdrawal accounts.
So far, just the nation’s leading 4 crypto exchanges — Upbit, Bithumb, Coinone, and Korbit — have been able to safe collaborations with banks, which have hesitated to partner with crypto exchanges due to dangers consisting of cash laundering.
Crypto businesses that do not have banking partners to provide real-name verification deposit/withdrawal accounts must terminate the trading in the KRW market even if they have received ISMS certification. That implies 24 out of the 28 exchanges will be crypto-just exchanges.
Financial authorities in South Korea have also distributed business closure guidelines to the cryptocurrency industry. Exchanges should alert users of the anticipated closing date and how they can withdraw their funds a minimum of 7 days prior to the closing date. They must also provide a window of at least 30 days from the closing date to allow users to withdraw their funds. Korean authorities are likewise supposedly keeping track of crypto exchanges that are most likely to closed down to guarantee they return funds to clients.
