- South Korean crypto exchanges are delisting risky coins.
- The move comes in the wake of tighter operating regulations.
- However, the South Korean crypto market continues to flourish.
South Korean crypto exchanges have tightened their listing rules in the wake of tighter regulations in the country. As a result, some high-risk coins have been either de-listed or suspended.
To clarify, South Korea now requires crypto exchanges operating in the country to register with the Financial Supervisory Service (FSS). In addition, the government requires crypto exchanges to work with banks to provide real-name bank accounts for their users.
However, several banks have declined to work with the exchanges. Some banks like Woori, KB, and Hana cited hacking and money laundering fears as the reason for their reluctance.
To mitigate this, it seems exchanges are taking a stricter stance to qualify for the Information Security Management System (ISMS) certification. In fact, 11 out of the 20 certified exchanges made some changes.
For instance, Upbit Exchange recently flagged 25 coins for review. The exchange designated the flagged coins as risky investments and warned users that deposits for the coins had been suspended. Upbit also warned that if the coins failed to comply with the exchange’s listing standards, the coins would be delisted. So far, Upbit has delisted five cryptos.
Similarly, Coinbit has delisted 8 cryptos so far and flagged 28 more. In addition, Huobi has suspended trading its Huobi token.
Also, several international exchanges like OKex and Binance have exited the country. While Binance attributed the closure to liquidity problems, OKex did not give a reason.
However, the Korean crypto market has continued to flourish despite the tougher operating environment. For instance, Korbit recently launched South Korea’s first NFT marketplace.