Crypto Exchanges in South Korea Narrows Register Rules

Crypto Exchanges in South Korea Narrows Register Rules

South Korea’s crypto exchanges have narrowed their listing requirements to stimulate the country’s tighter regulations. Therefore, some high-risk coins have been either suspended or delisted.

The nation’s Financial Supervisory Service announces that crypto exchange operations require registration on FSS.

Last week, South Korea’s Financial Intelligence Unit (FIU) stated that it reached out to 33 crypto trading platforms in the country. It insists that it will be conducting field consultations before September 24 this year.

Moreover, the government also mandates the operation to work with local banks in providing the user’s real-name bank accounts.

However, a lot of local banks expressed their refusal to work with digital currency exchanges. These banks include Woori, KB, and Hana, which all cited hacking and money laundering worries as a reason for the turndown.

To lessen these fears, the government made stricter rules for crypto exchange to qualify for the Information Security Management System (ISMS) certification. Certainly, 11 out of 20 certified exchanges created some alterations. Namely, Upbit Exchange freshly indicated 25 coins for review.

It is mandated to label the coins as risky investments and inform users that coin deposits have been suspended.

Also, the exchange company was warned that if the coins failed to follow the listing standards, they would be delisted.

So far, Upbit has already delisted five cryptocurrencies in the country. Similarly, Coinsbit Exchange also delisted eight cryptos and flagged 28 more. In addition, Houbi Global discontinued trading its Houbi token.

Furthermore, various international exchange companies such as OKex and Binance left the country.

Moreover, the Korean cryptocurrency market was halted from prospering despite the better operating environment. For example, the Korbit crypto exchange recently launched in the country as its first Non-Fungible Token (NFT) marketplace.

Indonesia Crypto Ban

Meanwhile, the central bank of Indonesia announced its plan to ban cryptocurrency use for payments.

On Tuesday, the government of the Apex Bank stated that digital assets such as Bitcoin and Ethereum would not be allowed for other financial services transactions. He also added that cryptocurrencies are not acknowledged as a legal means of payment by the central bank.

Due to this, financial institutions are expected not to have any deals with the asset class.

The central bank will deploy officers to impose the restrictions to guarantee that the institutions will follow the ban.

Meanwhile, other countries, such as El Salvador, are publicly oathing their support for Bitcoin. However, Indonesia refused to follow and didn’t like the idea.

Recently, it shut down 26 investment and peer-to-peer lending platforms which, include three trading forums, for failing to acquire a license.