South Korean cryptocurrency exchanges that are unable to meet the Financial Intelligence Unit’s (FIU) registration exercise must inform their customers by midnight today that they will shut down operations one week before the September 24, 2020 deadline.
They have been directed to notify their customers about the suspension of operations and to give detailed information on how users can withdraw their funds.
According to a statement by Reuters, the South Korean Financial Service Commission (FSC), “Should any or all services be closed, (cryptocurrency platforms) should notify customers about the closing date and procedures for withdrawing money at least seven days prior to the closure.”
Compulsory AML registration
Remember that all digital asset exchanges within South Korea’s regulatory purview were instructed by the regulator to conform to its anti-money laundering rules. They must register with the FIU to avoid having their websites taken down.
As part of registration, exchanges had to work with banks in order to open accounts for real-name verification. The Internet Security Agency also requires security certificates to be obtained by crypto trading platforms.
South Koreans will not be able to use all the services offered by exchanges that have security certificates. These platforms will not be allowed to settle in the official fiat currency of South Korea – won.
Four Exchanges will continue to offer full services
Only four exchanges in South Korea have met all of the FIU registration requirements, including Upbit, Bithumb and Coinone.
Reuters reported that almost 40 exchanges had disclosed that they would suspend all services if they fail to meet the registration requirements.
ProBit, Cashierest and Flybit are just a few of the 28 trading platforms that have secured security certificates. This will allow them to continue their operations in the country, even without having to settle any settlements.
Reports indicate that smaller exchanges had difficulty partnering with banks due to the fact that traditional financial institutions opted not to work with crypto-related companies due to hacking and accountability risks.
Marla Brooks – Financial Analysis
My name is Marla Brooks, and I am the mainstream behind the”observednews.com” for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.