The cut-off date for cryptocurrency exchanges and pockets operators to comply with the new regulatory requirements to stay open in South Korea is that this week. So a long way, handiest one crypto alternate has been licensed to retain operations. About 60 crypto exchanges are anticipated to either shut down or reduce services.
60 Crypto Exchanges Expected to Shut Down or Reduce Services
Under the “Act on the choices Reporting and Use of Specific Financial Transaction Information (Special Act),” crypto exchanges ought to be Information Security Management System (ISMS)-certified and register with the choices South Korean Financial Intelligence Unit (FIU) by using Sept. 24. Crypto exchanges that fail to do both should cease operations on that date.
According to nearby media, 34 exchanges have no longer received ISMS certification, so they’re expected to shut down completely on Sept. 24.
A total of 29 crypto exchanges were ISMS-certified but handiest one has effectively registered with the FIU, a unit of the choices Financial Services Commission (FSC), the choices united states of america’s top economic regulator.
The Financial Intelligence Unit held its first crypto commercial enterprise review meeting Friday to check the choices record submitted through Dunamu Inc., the operator of Upbit, the most important crypto alternate within the us of a. The overview committee widely wide-spread the file, making Upbit the choices first certified crypto change operator within the country.
The FIU in addition found out Friday that except Upbit, four different crypto alternate operators have submitted a report: Bithumb, Korbit, Coinone, and Korea Digital Exchange (Flybit). In addition, a pockets operator, Korea Digital Asset (KODA), has also submitted a document.
Considering that there may be one week left till the choices 24th, digital asset companies who have no longer but filed a file must record a report directly.
In addition, registered crypto exchanges that want to offer buying and selling in Korean won have to also associate with banks to offer customers with actual-call established accounts. So some distance, only the choices country’s biggest exchanges — Upbit, Bithumb, Coinone, and Korbit — have secured banking partnerships. Banks are reluctant to accomplice with smaller exchanges because of dangers inclusive of cash laundering.
That approach, 25 crypto exchanges out of the choices 29 that have been ISMS-licensed will be crypto-handiest exchanges in the event that they effectively check in with the choices FIU. They need to stop providing buying and selling in Korean received with the aid of Sept. 24 and must have already notified their clients as required through the choices monetary regulators. Four corporations — Gopax, Gdac, Hanbitco, and Huobi Korea — said they may be still working to stable banking partnerships through the choices closing date.
Currently, out of sixty three crypto exchanges, simplest the choices pinnacle four exchanges will maintain to function as regular. The relaxation will either shut down or lessen services.
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