September 28, 2022
  • September 28, 2022

Only 10 Korean crypto exchanges have reached the registration deadline

By on September 25, 2021 0

BeInCrypto –

Only ten cryptocurrency exchange companies registered with the KFIU, while only four additionally entered into contracts with banks, which was the second requirement.

On Thursday, September 23, 2021, six Korean crypto exchanges, Five, Gdac, OK-BIT, Prabang, Flat Thai X, made progress on regulatory compliance requirements set out by the Korean Financial Intelligence Unit, with 18 more expected to file documents by Friday, September 24. If these are completed, this would bring the total to 28 registered trades. These 28 include what is collectively known as the ‘Big Four’ namely Upbit, Bithumb, Coinone and Korbit, which account for over 90% of crypto asset trading volumes in the country of South Korea. The Big Four have contracted with banks for real-name account verification and received certification from the Korea Internet and Security Agency, meaning their registrations were eligible for submission to the KFIU.

Underfunded exchanges will likely be the most affected

Certain security infrastructures were required of exchanges by the Korea Internet and Security Agency (KISA) in order to reduce the risks of money laundering. In addition, partnerships with local banks must be secured, before approval is granted by the Financial Services Commission. Banks assume the risk if funds are used for financial crimes, so they have been reluctant to partner with exchanges that lack the resources to implement comprehensive anti-money laundering systems. in accordance with KISA requirements. Industry experts have estimated that at least fifty exchanges will close or reduce service offerings because they do not meet all the requirements.

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