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Crypto exchanges in South Korea could close their operations this month
Cryptocurrency exchanges operating in South Korea are expected to submit requests for an official license with the (FSC) before September 24. With the date looming closer, some crypto exchanges are planning to shut down their operations.According to a report by the Financial Times, at least 40 crypto exchanges in South Korea will be forced to shut down. With 60 crypto exchanges currently available in the country, only 20 of them would be left operational.
The FSC demands that crypto exchanges operating in the country show evidence that they are operating using real-name accounts at South Korean banks. According to the FSC, this is due to the need to provide more protection to customers, especially on smaller cryptocurrency exchanges.
However, South Korean banks have refused to engage in any risk assessment process for cryptocurrency exchanges that have applied to bank with them. The banks have limited their services to only the leading trading platforms in South Korea.
Upbit, Bithumb, Korbit and Coinone, the four leading exchanges in South Korea, are receiving favorable treatment from the banks. These exchanges already account for more than 90% of the trading volume in the country.
Binance and Bitfront already left South Korea
Cryptocurrency exchanges Bitfront and Binance have already discontinued their services in the Asian country. With the current regulation, more cryptocurrency exchanges will leave South Korea over the coming weeks and months.Continue reading by joining Cryptonary Pro
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