Over 60 cryptocurrency exchanges in South Korea will suspend some or all of their services after the 24th, Reuters reported on the 17th.
The suspension came after the Korean Financial Services Commission (FSC) announced in April that all cryptocurrency exchanges in the country must register with FSC’s anti-money laundering organization, the Korea Financial Information Analysis Institute (KFIU) by 24 Sept. to continue operating in the country.
Additionally, they need to obtain certification for a security system that protects sensitive data from threats.
Exchanges also need to partner with banks, meet KYC (customer verification) requirements, and open a customer’s account with their real name.
Banks have been cautious of forming alliances with exchanges and only major exchanges – Upbit, Bithumb, Coinone, and Korbit have completed the process.
Exchanges that have not registered for their licenses will have to suspend their services after the 24th. However, if they were able to register but cannot partner with a bank, they will be prohibited from offering trading services in S. Korean legal tender ‘Won’.
According to the Reuters report, 28 exchanges have registered with KFIU but have not been able to find partner banks. Exchanges including ProBit, Cashierest, and Flybit have announced that they will only offer transactions in digital currencies until they secure partnerships with banks.
Also, foreign exchanges such as ByBit, OKEx, and Binance have announced that they will partially restrict services in South Korea.