Tidio Live Chat Software - Add Tidio live chat software to your website in minutes. Contact visitors and turn them into happy customers. Enhance their experience and boost your sales. Get it for Free

Must Read

Yusuf Balogun
Yusuf Balogun
Yusuf is an aspiring Journalist and Health law expert with a special focus on technology innovations. He is a writer at Right for Education, Libertist Centre for Education, Qwenu, and Editor at Gamji Press, UDUS.

As September 24th is fast approaching, the deadline for South Korean crypto exchanges to meet new compliance criteria, the majority of Korean crypto exchanges will be shut down. This is because all operators are expected to submit requests for an official license with the Financial Services Commission (FSC) on or before the date.  

For much of the past year, industry actors and minor exchange representatives have fought the new regulations, but to no avail. According to insiders, up to 40 of the estimated 60 crypto businesses in the country will be forced to shut down given the official license.  

Also Read

The requirement that all exchanges present proof that they are functioning using real-name accounts at South Korean banks is at the heart of their issue. The FSC has justified this by arguing that there is a high demand from customers for more protection for their assets held at smaller crypto platforms.

Except for the country’s top four trading platforms, South Korean banks have largely declined to participate in any risk assessment procedure for applicant exchanges. 

Elegant Themes - The most popular WordPress theme in the world and the ultimate WordPress Page Builder. Get a 30-day money-back guarantee. Get it for Free

Customers have expressed a strong desire for stronger safety for their money kept on smaller crypto platforms, according to the FSC. These four exchanges – Upbit, Bithumb, Korbit, and Coinone – already account for over 90% of total traded volume in South Korea, and analysts have argued in recent months that the FSC’s new framework will further entrench the country’s crypto industry as a monopoly.  

A professor at Korea University and the head of the Cryptocurrency Research Center, Kim Hyoung-Joong, predicts that the mass exchange closures will result in the abolition of 42 “kimchi coins,” which are smaller altcoins that are listed on smaller platforms and traded against the Korean won. 

While the head of local crypto exchange Foblgate, Lee Chul-Yi, told the Financial Times that:   

“A bank run-like situation is likely near the deadline, as investors are unable to cash out their holdings of ‘alt-coins traded on minor exchanges. They will become impoverished overnight. I’m not sure if regulators will be able to deal with the consequences.” 

Save up to 60% on OptinMonster

Stay updated

Subscribe to our newsletter and never miss an update on the latest tech, gaming, startup, how to guide, deals and more.

- Advertisement -
- Advertisement -

Latest

Grow Your Business

Place your brand in front of tech-savvy audience. Partner with us to build brand awareness, increase website traffic, generate qualified leads, and grow your business.

- Advertisement -

Grow Your Business

Get these business solutions, tools and services to help your business grow.
Elementor

Elementor -Join 5,000,000+ Professionals Who Build Better Sites With Elementor. Build your website with 100% visual design that loads faster and speeds up the process of building them.

WP Rocket

WP Rocket - Speed up your website with the most powerful caching plugin in the world. The website speed increase means better SEO ranking, user experience, and conversation. It’s a fact that Google loves a fast site.

Kinsta

Kinsta - If you are looking for WordPress managed hosting, Kinsta is in the leading front. Kinsta provides WordPress hosting for a small or large business that helps take care of all your needs regarding your website with cutting-edge technology.

OptinMonster

OptinMonster - Instantly boost leads and grow revenue with the #1 most powerful conversion optimization toolkit in the world. 700,000+ websites are using OptinMonster to turn their traffic into leads, subscribers, and sales.

Related

- Advertisement -
- Advertisement -