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OKEx Korea to shutdown amid regulatory and business challenges

TL;DR

TL;DR Breakdown

  • OKEx Korea is planning to stop operations entirely on April 7.
  • One of the officials cited regulatory and business difficulties.

The South Korean branch of the leading Malta-based cryptocurrency exchange, OKEx, has announced plans to close operations in the coming months. An official from the exchange being more specific, cited regulatory and business challenges as the reason.

In the announcement on Tuesday, the exchange asked all the customers to withdraw their cryptocurrencies to external wallets or other crypto platforms, including the local currency, the South Korean Won (KRW).

OKEx Korea decides to shut down

As noted in the announcement, OKEx Korea will terminate its cryptocurrency services, including crypto and fiat currency deposits, on the 7th of April. Hence, all the customers have been asked to withdraw their funds; they won’t be able to login after the state date, and also non-traded orders will be automatically canceled.

“After the end of the service, OKEx Korea will not be held liable for any losses arising from failure to withdrawal by the customer.”

OKEx Korea was established back in 2019. Its trading volume sits $1.4 million over the last 24 hours, from 221 available pairs. One of the officials disclosed that the exchange has been facing business and regulatory challenges, which somewhat explains the decision to shut down the cryptocurrency exchange completely.

“We struggled to get an ISMS [Information Security Management System certificate] and virtual account [bank account required to get licensed]. As a joint venture company with OKEx.com, it was hard to decide, but we had no other option,” the OKEx Korea official told The Block on Tuesday.

South Korean new rule

The development today comes as South Korean authorities prepare to pass a new rule on the 25th March, which will prohibit exchanges from sharing order books with other exchanges. Binance Korea had also closed its services in the country allegedly due to the proposed new law.

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John Lincoln

Lincoln contributes blockchain and crypto perspectives that meet the industry's selective information needs in a timely, undiluted fashion. His greatest wish is to share transformational technology through an engaging and easy-to-read style, making complex topics accessible to all.

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