Today is the deadline set by the South Korean market regulators, the Financial Services Commission (FSC), and the Financial Supervisory Service (FSS) for trading platforms to secure a banking partnership or risk being banned from doing business in the country.
As of the time of writing, only the top 4 trading platforms, including Upbit, Korbit, Coinone, and Bithumb, have secured the required licenses.
With a number of exchanges still expecting to remain on course to continue rolling out services within the country, the FSC, and FSS, according to local media, reportedly held an emergency meeting to determine which platforms have shut down and which are certain to continue their operations.
Local media DongA reported, 29 of the 63 domestic exchanges are on track to outlive. Amongst these 29 exchanges billed to outlive, as much as 24 of them will function as a ‘half enterprise’. This will likely be doable as they’ve secured the knowledge security management system (ISMS) certification, permitting them to provide crypto-to-crypto trading providers. Only the remaining few with the banking partnerships for the required KYC data collections will be able to function crypto trading with the Korean Won pairs.
With the exchanges set to cease their KRW listings, as a lot as 2,216,613 account holders have wallets on the 18 largest platforms set to stop trading KRW, according to the data on opposition’s People’s Power Party MP Kang Min-guk. The authorities have warned buyers to not commerce on exchanges that haven’t been issued the ISMS certification to avoid losses.
“If you use an exchange that has not received ISMS certification, you have to be very cautious as there’s a risk of incurring damage,” said Koh Seung-beom, the FSC Chairman.
The digital currency ecosystem terrain in South Korea is remarkably polarized at the moment. Nonetheless, the adjustments coming to the country are in the good books of the 4 lucky exchanges, which will largely take up the spillovers from the other restricted exchange’s customers.