• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
Bitcoinist.com
No Result
View All Result
South Korea Crypto Exchange
Nexo

Over 60 Crypto Exchanges In South Korea To Suspend Operations From Next Week

Tolu Okuwoga by Tolu Okuwoga
8 months ago
in Crypto News
0

The Financial Services Commission (FSC) in South Korea has set a deadline for foreign and local crypto exchanges to register as legal trading platforms. The financial watchdog has set a September 24 deadline for exchanges to comply. This requirement is part of an effort to tighten oversight of the country’s exuberant crypto sector. Consequently, nearly two-thirds of all exchanges will have to shut down.

Related Reading | Breaking Down What South Korea’s Crypto Crackdown Means for the Industry

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Requirements For Crypto Exchanges In South Korea 

More than 60 cryptocurrency exchanges in South Korea must notify customers of a partial or total suspension of trading a week before a new regulation comes into effect.

To continue operating, exchanges must register with the Financial Intelligence Unit by September 24, providing a security certificate from the internet security agency. They must also partner with local banks to open real-name bank accounts for customers.

Exchanges that have not registered must shut down services after September 24. While those that have registered but failed to secure partnerships with banks will be prohibited from trading in won.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

The FSC has advised exchanges that fail to meet regulatory conditions to inform their customers of any likely closure by Friday, September 17. 

“Should some or all services need to be closed, (exchanges) should notify customers of the expected closing date and procedures to withdraw money by at least seven days before the closure,” the Financial Services Commission said earlier this week.

Almost 40 of South Korea’s estimated 66 crypto operators are set to suspend all services. According to The Korea Herald, as of Friday, only 28 exchanges have the appropriate system designated by authorities designed to proactively limit any security breaches.

Related Reading | Crypto Exchanges Distancing From South Korea Ahead of Stricter Regulations

Just four exchanges – Upbit, Bithumb, Coinone, and Korbit – have registered. They have also secured partnerships and, therefore, have permission to make won settlements. These happen to be the four exchanges dominating crypto trading in South Korea. They account for more than 90 percent of the country’s total trading volume.

Some smaller exchanges including ProBit, Cashierest, and Flybit have already said they will end won trading. And that they will continue operations involving only digital coin trading until securing partnerships with banks.

Closures Could Lead To Huge Losses

South Korea is one of the world’s biggest digital currency markets. However, two-thirds of South Korea’s cryptocurrency exchanges prepare for closure due to the regulatory overhaul. As a result, investors could lose up to KRW 3 trillion ($2.6 billion).

The mass shutdown of smaller exchanges could also eliminate 42 ‘kimchi coins’. They are alternative digital currencies that are listed on local exchanges and traded mostly in Korean won. Kim Hyoung-Joong, a professor and head of the Cryptocurrency Research Center at Korea University, estimated this. Industry data showed that digital coins other than bitcoin made up about 90 percent of South Korean crypto trading, highlighting the market’s highly speculative nature.

Total crypto market cap on TradingView.com

Total crypto market cap drops to $2.13 Trillion | Source: Crypto Total Market Cap from TradingView.com

“A situation similar to a bank run is expected near the deadline as investors can’t cash out of their holdings of altcoins listed only on small exchanges,” said Lee Chul-Yi, head of Foblgate, a mid-sized exchange. “They will find themselves suddenly poor. I wonder if regulators can handle the side-effects.”

About 20 exchanges have met some of the regulatory conditions and have the approval to offer crypto-to-crypto trading services. But some have said the operators would still struggle for survival, given the limited size of their business.

Related Reading | Crypto Exchange Binance Discontinues South Korean Trading Pairs And Language Support

“Huge investor losses are expected with trading suspended and assets frozen at many small exchanges as customer protection will not likely be the priority of those exchanges facing an imminent closure,” said Cho Yeon-haeng, president of Korea Finance Consumer Federation.

The regulations will also affect global exchanges offering won trading. The FSC has sent a notice to 27 foreign crypto exchanges that run operations for Korean traders.

Featured image from cryptoknowmics.com, Chart from TradingView.com
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Tolu Okuwoga

Tolu Okuwoga

Related Posts

Crypto

Crypto Subsidiary To Be Launched By Japan’s Largest Investment Bank

3 hours ago
US Justice

US Justice Department Executes First Criminal Crypto Charge

16 hours ago
DAO

DAO For Abortion, Anyone?

21 hours ago
Goldman

Goldman Sachs And Barclays’ Investment In Elwood Tech A Major Triumph For Crypto Adoption

2 days ago
crypto

Crypto Regulators From 5 Countries Identify A Potential $1 Billion Ponzi Scheme

3 days ago
Kraken

Kraken CEO Shuts Down San Francisco Headquarters – Here’s Why

3 days ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.