Huobi and Upbit delist several tokens to meet regulatory requirements

Eleven of South Korea’s 20 cryptocurrency exchanges with information-security certificates issued warnings or suspended trading of tokens deemed ‘too risky’ by regulators, according to Arirang.

Upbit delisted Paycoin, Maro, Observer, Solve.Care and Quiztok. Huobi Korea halted trading of the native token HT. Coinbit ceased trading of eight assets and added 28 more to its list with investor warnings.

In May the Financial Services Commission of South Korea (FSC) gained authority to supervise and regulate the cryptocurrency market.

To obtain the corresponding licence, local Bitcoin exchanges must open an account at a local bank. Existing players are required to meet this requirement by September.

According to the publication, Korean banks are reluctant to approve applications from cryptocurrency platforms due to fears of breaching anti-money-laundering rules.

According to Korea Times, on June 14 the FSC ordered local banks to stop servicing Bitcoin exchanges that allowed violations in customer identity verification or failed to prevent suspicious activity.

According to the regulator, only four of the 60 platforms operating in the country fully comply with the requirements.

In the first quarter of 2021, South Korean banks processed transactions totaling 64.2 trillion won (~$57.9 billion) on verified accounts linked to cryptocurrency exchanges.

In June 2021, residents of South Korea were required to disclose data on accounts at overseas bitcoin exchanges.

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