- Crypto exchanges have about a month left to meet South Korea’s regulations.
- Failing to do so would mean closing up or suspending operations.
- So far, only Upbit has managed to meet the necessary requirements, many have given up.
Amid South Korea’s steady steps to tighten crypto regulation within its borders, many crypto exchanges are falling from grace. Despite the political push to give the exchanges more time to comply, the Financial Services Commission (FSC) stands firm on its deadline.
Specifically, only a third of the country’s crypto exchanges have met the ‘minimum requirements’ set forth by the financial regulator. Only if these requirements are met will the exchanges be able to register with the FSC.
So far, 24 crypto exchanges are pretty much closing up shop as they cannot meet the requirements before the regulator’s deadline set on September 24. Although, this still means that exchanges have a chance to meet the standard and set up formal operating license applications.
For extra measure, the FSC took it upon itself to repeat its warning to all the exchanges. To highlight, it stated that exchanges who fail to submit their paperwork before the deadline will have to either shut down or face suspension of their operations.
As of right now, only Upbit has met the requirements. Meanwhile, other exchanges are making hard compromises. In particular, the crypto exchange Huobi Korea said that it will end designation and transaction support for 62 cryptos.
Similarly, Bitfront exchange made its decision to limit its services in South Korea. In fact, even the crypto exchange titan — Binance, halted Korean Won trading pairs to keep up with the tightening regulations.
Binance has been having trouble with tightening regulations in many other parts of the world as well. For instance, about two months ago it decided to pull out of Canada’s province — Ontario. There was also trouble with a South African bank and of course the raging battle between the UK’s financial regulator as well.