Looks like tougher regulation laws are catching up in the Asian nation. Korean exchanges and crypto trading platforms have started to delist certain digital currencies as they move to comply with stricture rules.
Trading of a bunch of coins that are deemed high risk has either been halted or completely suspended on several exchanges in Korea this week. The exchanges have started to purge the trading of these risky assets on their own in a bid to meet the tough new rules in Seoul.
It was back in April that the Korean Financial Services Commission (FSC) warned that some 200 domestic platforms could be shut down under the new regulations that must be enforced in September.
Many smaller exchanges are still failing to meet the registration requirement, and banks remain concerned that they could be held liable for money laundering offenses related to cryptocurrency transactions.
According to a report by Arirang, crypto trading platforms in the country have either temporarily halted or ended the exchange of some digital coins, while warning customers to be cautious of other currencies.
The publication revealed that out of the 20 exchanges that have already obtain Information Security Management System (ISMS) certification, 11 have made such changes. Among them are some of the leading crypto exchange providers in Korea.
Upbit, for example, has delisted five digital currencies, while Huobi Korea has discontinued trading of the Huobi token. Coinbit has ended trading of eight cryptocurrencies, while putting another 28 coins on a warning list.
In order to operate legally, Crypto exchanges in South Korea are now required to register with the Financial Supervisory Service (FSS). The trading platforms need to open real-name bank accounts for their customers in partnership with local banks.
However, up until now, only four crypto exchanges are currently working with commercial banks to implement the real-name account system.
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