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South Korean Crypto Exchanges Told To Toe The Line Or Shut Down

More than 60 digi currency exchanges must register with the country’s Financial Intelligence Unit and partner up with banks or face being ordered to stop trading

Just four of the country's exchanges – Upbit, Bithumb, Coinone and Korbit – have registered and secured partnerships so far. Photo: Reuters

 

More than 60 cryptocurrency exchanges in South Korea have been told to partially or fully suspend trading by Friday night, a week before new regulations come into effect.

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

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

 

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“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.

Of all exchanges, nearly 40 are set to suspend all services. A further 28 have security certificates but have not secured bank partnerships.

Just four – Upbit, Bithumb, Coinone and Korbit – have registered and secured partnerships and so will be allowed to make won settlements.

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.

 

  • Reuters and Sean O’Meara

 

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Sean OMeara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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