Binance bans use of the South Korean won on its platform

The cryptocurrency exchange Binance banned customers from using the South Korean won in transactions on its platform. The restrictions apply to trading, P2P trades and deposit payments.

The company said its decision was driven by a desire to comply with South Korean law. The country is not on the list of jurisdictions whose regulators are investigating Binance’s activities, but the regulatory environment in this jurisdiction is ambiguous.

On one hand, the state has fully legalised cryptocurrency trading. On the other, it has imposed strict requirements for registering Bitcoin exchanges, which must obtain a license FSC by 24 September 2021. In particular, together with partner banks, such platforms must ensure compliance with procedures KYC.

In April 2021, FSC Chairman Eun Sung-soo warned of the risk of all local cryptocurrency exchanges being shut down. The regulator’s requirements were met only by the country’s largest platforms — Bithumb, Upbit, Korbit and Coinone.

At the start of August, media reports appeared of the FSC to halt operations of 11 trading platforms and to report their violations to prosecutors and the police.

Binance took a similar decision with respect to the Malaysian ringgit. At the end of July, Malaysia’s Securities Commission issued a \u201cpublic reprimand\u201d to the company, its leadership and affiliated entities \u201cfor the illegal operation of a digital asset exchange (DAX).\u201d

Binance, whose activities have drawn the interest of several regulators in recent months, is now taking a more proactive stance on compliance, moving away from a reactive approach in favour of a preventive one.

.@binance pivoting from reactive compliance to proactive compliance. Stay tuned.

— CZ 🔶 Binance (@cz_binance) August 6, 2021

Earlier, the company restricted access to trading crypto derivatives for Hong Kong users. A similar move was taken for European clients, starting with Germany, Italy and the Netherlands.

The company reduced the daily withdrawal limit for new users who completed basic account verification from 2 BTC to 0.06 BTC. The exchange also reduced leverage on the futures platform to 20x.

On July 28, Binance announced the launch of a new API, allowing clients to track their transactions with crypto assets for tax compliance.

In June, the UK Financial Conduct Authority banned Binance Markets Limited from any regulated activity in the country without prior written approval.

The Cayman Islands began a probe into the exchange’s operations, Thailand and Hong Kong accused the company of operating without a license, and Japan issued another warning.

Polish regulators urged caution when using Binance’s services. Italy and Malta warned consumers about the company’s unregulated activities, and Indian authorities are examining its role in a case linked to money laundering .