Critical developments in the cryptocurrency world attract attention. In particular, Huobi Korea, one of the leading players in the world of crypto assets and the South Korean branch of the famous global exchange HTX, officially announced its decision to cease its activities. The announcement made last Friday underlines the difficult business environment in the country as the main catalyst for this move, with the closure date set as January 29. HTX is also known for its relationship with TRON founder Justin Sun. Here are the details…
TRON founder’s decision to close his stock exchange
Huobi Korea is no stranger to the complex dynamics of the cryptocurrency market. Founded in 2017, the company initially operated as a branch of HTX, later rebranded as Huobi Global. In a strategic move, the South Korean organization officially severed ties with HTX in January 2023, marking a significant moment in its independent drive. The decision to cease operations comes amid a series of closures affecting smaller South Korean cryptocurrency exchanges, including Cashierest and Coinbit, which have faced their own challenges, leading to closures in November.
In addition to the problems in the sector, CoreDAX, another platform in the region, was also reportedly struggling with problems such as suspending trading services and delaying salary payments for several months. In its official statement, Huobi Korea cited the current business environment as the driving force behind the discontinuation of its crypto asset trading service. Offering some reassurance amid the evolving situation, the company announced that users will be able to withdraw their funds even after the planned shutdown.
Other South Korean exchanges are quite active
The regulatory environment in South Korea is undergoing a transformation with the introduction of the Virtual Asset Investor Protection Act in July. This legislation introduces strict measures requiring exchanges to maintain user protection standards by keeping 80% of user funds in cold wallets. As the industry adapts to these regulatory changes, the impact on market participants and their strategies will likely be profound.
Latest data from the Financial Services Commission (FSC) sheds light on the concentrated nature of the cryptocurrency market in South Korea. As of June 30, 2023, the five largest exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax) control more than 99.6% of the total cryptocurrency trading volume in the country. Notably, these exchanges are the only entities successfully registered with local financial regulatory authorities, highlighting the need to comply with evolving regulatory frameworks.
What’s next?
As Huobi Korea tackles these challenges, the broader cryptocurrency community will closely observe the evolving dynamics and potential impacts on the industry in South Korea. The closure of such a major player raises questions about the importance of exchanges adapting to rapidly changing regulatory environments and the resilience of the cryptocurrency market as a whole.
To be informed about the latest developments, follow us Twitter’in, Facebookin and InstagramFollow on . Telegram And YouTube Join our channel.