The deadline for cryptocurrency exchanges to meet the requirements to continue operations under South Korea's new crypto regulations is quickly approaching. The regulators have reportedly given permission for 28 cryptocurrency exchanges to remain open. Only four cryptocurrency exchanges, however, have met the requirements to offer to trade in Korean won.
28 Cryptocurrency Exchanges Comply with Regulatory Standards
South Korean financial authorities have released a list of 28 cryptocurrency exchanges that have met the regulatory requirements to remain open beyond September 24 under the country's new crypto regulations.
The amended Act on Reporting and Using Specified Financial Transaction Information requires cryptocurrency exchanges to obtain ISMS certification by September 24 and report to the Financial Intelligence Unit (FIU), a division of the Financial Services Commission (FSC). Crypto exchanges that do not comply must close their doors by September 24.
According to Jeon Yo-seop, head of FIU's Planning and Coordination Office, given the approaching deadline:
"It is unlikely that additional certified virtual asset trading platforms will emerge."
- Gopax
- Upbit
- Korbit
- Coinone
- Bithumb
- Hanbitco
- Casherest
- Tennten
- Dove Wallet
- Flybit
- Gdak
- Aprobit
- Huobi
- Coin&coin
- Probit
- Borabit
- Coredax
- Okbit are among the 28 ISMS-certified exchanges.
To offer to trade in Korean won (KRW), crypto exchanges must also partner with banks to provide customers with real-name verification deposit/withdrawal accounts.
So far, only the top four crypto exchanges in the country — Upbit, Bithumb, Coinone, and Korbit — have been able to secure partnerships with banks, which have been hesitant to partner with crypto exchanges due to risks such as money laundering.
Even if they have received ISMS certification, crypto businesses that do not have banking partners to provide real-name verification deposit/withdrawal accounts must stop trading in the KRW market. That means that 24 of the 28 exchanges will be crypto-only.
South Korean financial authorities have also issued business closure guidelines to the cryptocurrency industry. Exchanges must notify users at least seven days before the expected closing date of the expected closing date and how they can withdraw their funds. They must also allow users to withdraw their funds for at least 30 days after the closing date. Korean authorities are also reportedly monitoring crypto exchanges that are about to close to ensure that funds are returned to customers.
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