October 19, 2021

Nearly 70 crypto exchanges will freeze their services in South Korea due to tightening AML regulations

Nearly 70 crypto exchanges will freeze their services in South Korea due to tightening AML regulations

From September 24, up to 40 cryptocurrency exchanges will stop operating in South Korea, and another 28 platforms will freeze all services and transactions with local won.

New rules come into effect on Fridayanti-money laundering, according to which all marketplaces that support the Korean language and national currency are required to have a security certificate and work with banks to link customer accounts to ral persons.

Without a certificate, exchanges are not allowed to work in the country. Platforms without agreements with banks will not be able to conduct operations with won. Yesterday they all warned customers about the full or partial closure of services.

To date, only 4 crypto exchanges (Upbit, Bithumb, Coinone and Korbit) have met all the conditions to continue their full-fledged work. Clients of 28 platforms will be able to work only with digital assets.

Foreign companies cannot receiveoperating license, so most sites will cease operations completely, since they also do not want to register in this jurisdiction due to strict regulation. However, Koreans will be able to continue to trade on them, but without using their national currency and language.

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