Saturday, January 28, 2023

More Than 60 Crypto Exchanges In South Korea Halt Operation

The regulatory body of South Korea has released a circular, ordering over 60 crypto exchanges in the country to inform their customer that by Friday midnight, they would either partially or fully suspend their services. 

According to the reports, the crypto exchanges have failed to comply with the new regulations, which the government is going to impose in the country, from next week. 

In order to continue their operation in the country, the crypto exchanges have been asked to register themselves with the Financial Intelligence Unit by September 24. Further, they must also collaborate with the banks to offer real-name bank accounts. 

As per the report, very few crypto exchanges have been able to comply with the AML guidelines and the rest have decided to halt their services. 

A week ago, the Financial Services Commission (FSC) of South Korea, released a public statement, notifying, “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.”

In January, the new AML guidelines got approval from the government. 

The new AML guidelines noted that all the crypto exchanges in South Korea must register themselves with the authorities and get licenses for their operation in the country. 

To obtain a license from the AML authorities the crypto exchanges need to partner with the banks and complete their KYC process.

Earlier, the country announced that the crypto exchanges must comply with the new AML regulations by March 2021. However, many of them failed to do so, as they were hoping that the government would re-think its decision.

The FSC extended the deadline then, making it clear to the exchanges that the authorities would not provide any further concession with compliance policies. As a result of this, most small and mid-sized crypto exchanges decided to halt their operation because they are not able to fulfill all the compliance requirements.

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