By Friday midnight, each overseas and native cryptocurrency exchanges concentrating on Korean buyers are required to register with the Korea Financial Intelligence Unit (KFIU) and have real-name financial institution accounts. If they haven’t any real-name financial institution accounts, cryptocurrency exchanges can be banned from withdrawing cash for cryptocurrency buying and selling.
The 10 exchanges embrace Upbit, Bithumb, Coinone, Korbit and Flybit, KFIU officers mentioned.
Also, the more durable guidelines require cryptocurrency exchanges to get a safety certificates from the nation’s web safety company.
Financial regulators have mentioned 28 out of 66 exchanges have obtained such a certificates.
Currently, solely 4 main exchanges — Bithumb, Upbit, Coinone and Korbit — have real-name financial institution accounts issued by business banks.
(*10*) the key 4 exchanges, different exchanges, which obtained the certificates, can proceed their companies after Saturday, however they are going to be unable to proceed buying and selling pairs utilizing the Korean foreign money, as a result of they haven’t any real-name financial institution accounts.
Some medium-sized exchanges, together with Flybit, Coredax and Foblgate, have suspended buying and selling pairs utilizing the Korean foreign money or introduced the suspension of such buying and selling.
The actual quantity of cryptocurrencies traded on medium-sized or small exchanges is unknown, however market watchers mentioned they account for about 5 to 7 % of whole cryptocurrency buying and selling in South Korea.
For months, worries about regulatory crackdowns have hammered costs of smaller cash and a few minor exchanges voluntarily discontinued operations or delisted smaller cash.
Korean buyers had been closely shopping for digital foreign money, contemplating it a profitable asset amid the coronavirus pandemic.
Especially, younger folks had been investing in cryptocurrencies, anticipating larger returns, with some saying they can not purchase houses solely with their incomes amid skyrocketing residence costs. (Yonhap)