Media: 40 of South Korea’s 60 crypto exchanges to close due to regulator’s requirements

After September 24, 40 out of roughly 60 cryptocurrency exchange operators in South Korea will cease operations due to non-compliance with the FSC‘s requirements. The Financial Times reports.

The rules include ensuring compliance with KYC procedures together with partner banks. Banks are reluctant to expand cooperation with trading platforms, fearing additional scrutiny from financial regulators.

The FSC required exchanges to register by September 24 and to notify customers by September 17 of possible closure if they fail to complete the step.

According to the publication, only 20 firms had complied with the orders. Earlier, the country’s largest platforms — Bithumb, Upbit, Korbit and Coinone — had registered with the agency. They account for 90% of all trading volume of digital assets in South Korea.

We expect something akin to банковской паники as the FSC deadline approaches. Investors may face losses. Is the regulator ready for this?, asked the head of the Foblgate exchange Lee Chul-i.

The FSC’s requirements also affected foreign Bitcoin exchanges serving Korean citizens. In August, Binance banned customers from using the South Korean won in operations on its platform. The restrictions affected trading, P2P deals and deposit payments.

In June, residents of South Korea were obliged to report their assets on overseas cryptocurrency exchanges as part of tax-law compliance.

According to local media, one in four South Korean students invests in Bitcoin. In April, some employers noted that their employees aged 20 to 30 are distracted by monitoring the price fluctuations of the first cryptocurrency or left their jobs to devote themselves entirely to trading.

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