60 crypto exchanges in South Korea to be shut down

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TL;DR Breakdown

  • South Korea warns crypto exchanges about the deadline for registration with the Financial Authority.
  • At least 10 crypto platforms in South Korea will continue to operate in early October.

The South Korean government is joining the long list of regulations against cryptocurrencies. The authority has announced that crypto exchanges not registered with the FIU must abandon their operations before next Friday, the 24th of September.

Crypto wallets that operate in the South Korean country without registration must notify their clients they will no longer provide the service. But these crypto trading platforms will also have to explain how clients can withdraw their money so as not to be scammed.

FSC focuses on unregistered crypto exchanges

crypto exchanges

South Korea’s regulatory agency FSC said that unregistered crypto exchanges would inform their clients to close their opened domains. This warning must be sent at least seven business days before the wallets close. This is done with the aim that users can calmly withdraw the money they had previously invested in cryptocurrencies.

These FSC measures were prompted by the mandatory registration of crypto exchanges a few weeks ago. The commission asked crypto wallets to register with the FIU to comply with the money laundering, theft, and fraud laws that the country dictates. The clause date for registration is till the 24th of September, after which the unregistered crypto platforms would have to be closed.

One condition of the registry is these crypto platforms should be linked with a national bank to verify the developer’s identity. These wallets must also have a security license issued by the agency.

The platforms that have only obtained the security license and not the UIF registry will continue to operate within the country. But, they cannot exchange the cryptocurrencies for fiat or vice versa until they register.

FIU registration in South Korea against crypto wallets

South Korea had around 100 crypto exchanges, of which only four platforms have registered with the FIU. Wallets like Coinone, Korbit, Bithumb, and Upbit, the most popular among South Koreans, have been registered with the regulatory authority.

Additionally, wallets such as Flybit and ProBit have not been approved by the registry. Still, these wallets have the security license to continue to operate with cryptocurrencies within the country.

Other newer crypto exchanges could not register nor get their security license because they cannot be linked to a bank. Regulators think these unregistered wallets should not be allowed to operate because they may be scams or involved in crimes. Although South Korean regulators’ measures against crypto seem exaggerated, the regulators have promised that they will let the exchanges run freely after registration.

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Carisbel Guaramato

An avid content creator for over 4 years, Carisbel spends her time on blogs and technology news. She honed her skills as a social communicator and now finds crypto and blockchain news events worldwide for transmission through Cryptopolitan's neutral and incisive way.

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