The registration deadline for Bitcoin exchanges in South Korea ended on September 24. And only four of the remaining 40 cryptocurrency exchanges in the country have completed all the stages and have been awarded the license. South Korea’s latest AML guidelines, which went into effect in January, require crypto exchanges to eliminate shadow banking accounts and partner with banks to offer real banking facilities to customers. However, of the more than 300 cryptocurrency exchanges operating at the time, only a quarter made submissions. For details of the news cryptocoin.com keep reading.
4 exchanges were able to obtain licenses in the extension period given to Bitcoin exchanges
The South Korean Financial Service Committee (FSC) extended the deadline for registration to September 24, after none of the crypto exchanges submitted advance applications by the first deadline in March. However, even after the second overtime, only four people were able to make the recording. According to the new guidelines, the four crypto exchanges that will operate legally will be Upbit, Bithumb, Coinone and Korbit.
Among the smaller exchanges, Gopax was the only one to strive until the last moment for a banking partnership. But on Friday, it revealed that none of the regional banks were ready for the partnership. Upbit has agreements with internet-only bank K, Bithumb and Coinone have agreements with NongHyup Bank, and Korbit with Shinhan Bank.
Four crypto exchanges to rule the entire South Korean cryptocurrency market
The four registered crypto exchanges will now be solely responsible for all crypto trading in South Korea, unless other crypto exchanges apply for a license. Rep. of the ruling Democratic Party of Korea. According to data released by Noh Woong-rae earlier this month, the four crypto exchanges in question control 97.5% of the South Korean crypto market.
Banks have been reluctant to join crypto exchanges for fear of loss of trust should crypto exchanges run into any problems. However, the lack of competition in the market may also become a major problem in the future.
Famous crypto exchanges such as Binance, ByBit, and BitMex have limited their activities and services in the Asian country.
In April, South Korea’s Financial Services Commission released guidance requiring all entities providing virtual asset services in the country to register with the Financial Intelligence Unit (FIU), the anti-money laundering arm, on or before September 24. It also demanded that they obtain a security certificate and partner with a bank to help facilitate deposits and withdrawals for users under their real names. So far, only four major Bitcoin exchanges, Upbit, Bithumb, Coinone, and Korbit, have successfully passed dual requirements, including signing a contract with banks to verify the real name of accounts, making them eligible to offer Korean Won (KRW) trading pairs and payment options. made it.
On the other hand, exchanges such as Gopax, Huobi Korea and Gdac have not partnered with any banks and will have to cease operations in the country tonight. Already ProBit and Problegatr have ceased operations as they cannot meet the requirements. In particular, famous crypto exchanges such as Binance, ByBit, and BitMex have limited their activities and services in the Asian country. Two of these exchanges have gone so far as to remove support for the Korean language. Interestingly, one of the FIU’s criteria when evaluating an application is that the exchange supports the language of the country.
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