Customers of more than 60 cryptocurrency exchanges in South Korea will be required to be informed of a partial; or complete suspension of trading on the exchanges by Friday midnight in response to a new regulation that is to come into effect seven days later.
Under the soon to be implemented new regulation, all cryptocurrency exchanges are now required to get themselves registered with the Financial Intelligence Unit of the country by September 24 along with providing the regulators a a security certificate issued by the internet security agency of the country. And in order to ensure that they have accounts under the real name of the holders, cryptocurrency exchanges also need to strike partnerships with banks.
All the exchanges that do not get registered as mentioned above will have to shut down their operations after September 24. On the other hand, those cryptocurrency exchanges that get registered but have not been able to get into partnerships with banks for ensuring accounts with valid names of holders will not be allowed to trade or offer their services to customers in won.
“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 Commision said earlier this week. It said this should be completed no later than September 17.
According to reports, about 40 of the total cryptocurrency exchanges in South Korea are set to suspend all their services to customers because of the new regulation.
28 other exchanges have managed to get security services but are yet to strike partnerships with banks.
Reports said that getting registered with the Financial Intelligence Unit of the country and securing partnerships with banks ha sben possible for only four exchanges – Upbit, Bithumb, Coinone and Korbit, which will be allowed to offer its trading services and settlements in won.
A number of the smaller exchanges such as ProBit, Cashierest and Flybit have already said they will not be able to offer their services in crypto trading in won any further and they will continue to operate by offering only digital coin trading until securing partnerships with banks, said reports.
(Adapted from CoinMarketCap.com)