Beautiful Virgin Islands

Tuesday, Jun 24, 2025

New Regulation In South Korea Force Shut Down Of 37 Crypto Exchanges

New Regulation In South Korea Force Shut Down Of 37 Crypto Exchanges

New regulation for crypto exchanges in South Korea is now effective. 37 exchanges were unable to meet the new requirements, and were forced to stop operations in the South East Asian country. 29 crypto exchanges met the deadline to continue operations, but only four of them can offer trading in Korean won.

The Act on Reporting and Using Specified Financial Transaction Information requires crypto exchanges to obtain Information Security Management System (ISMS) certification and submit a report to the country’s Financial Intelligence Unit (FIU) by midnight on September 24. The new requirements force exchanges that want to offer trading in Korea won to form a partnership with a local bank to offer real-name accounts to users.

29 crypto exchanges survive, 4 allowed to exchange in Korean won

The Financial Services Commission (FSC), South Korea’s top financial regulator, said Saturday that 29 crypto exchanges are ISMS-certified and submitted a report to the FIU before the deadline. Their submissions will be processed within three months.

Only four out of 29 exchanges — Upbit, Bithumb, Coinone, and Korbit — have successfully partnered with banks to offer real-name accounts to their users. A bank partnership is required for exchanges to offer traders the ability to buy and sell cryptocurrencies in exchange for Korean won. The remaining 25 exchanges are only allowed to operate as crypto-only exchanges.

Gopax, Huobi Korea and Gdac tried to reach a deal from banks but to no avail, and will have to halt their Korean-won trading services.

The 29 exchanges are obliged to set up a system to adopt global anti-money laundering standards called the “travel rule.”

The travel rule is a global standard imposed by the Financial Action Task Force, an intergovernmental anti-money laundering watchdog, on virtual asset service providers such as cryptocurrency exchanges and digital wallet providers. The country’s virtual asset service providers are required to establish the travel rule system, which requires real-name verification of senders’ identities for international transfers, by March 25 next year.

Three exchanges — Bithumb, Coinone, and Korbit — launched a joint venture to develop a travel rule system together, while Upbit, the largest exchange in South Korea, announced its own system developed by its subsidiary.

The Act on Reporting and Using Specified Financial Transaction Information requires crypto exchanges to be equipped with ISMS and to form partnerships with banks by Friday.

37 exchanges forced to shut down

After the Friday deadline, 37 exchanges without the required qualifications face closure as their businesses became illegal by the new law. They face a fine of up to 50 million won ($42,365) or up to five years of jail time. The shutdown of the 37 exchanges, however, is expected to make just a minor impact to the market, as their trading volume account for less than 0.1 percent of the total transactions made here. Their hold of investors‘ money is estimated to not exceed 500 million won.

The industry is also paying keen attention to ongoing discussions on legislation regarding the virtual asset industry as a whole at the National Assembly. There are 13 proposed bills in Parliament that could possibly set the foundation for the industry.

In legislation proposed by the opposition People Power Party, the requirement for real-name accounts would be removed while another bill proposed by the ruling Democratic Party and Justice Party stipulates an exchange has to gain approval from the government, strengthening the current registration system.

“It is meaningful that many unqualified exchanges are sorted out during the registration process,“ an official at a cryptocurrency exchange said. ”But it is also true that real-name accounts became an entry barrier, even for blockchain startups that have great potential.”

Source: New Regulation In South Korea Force Shut Down Of 37 Crypto Exchanges – Fintechs.fi

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
BBC Demands Perplexity AI Immediately Stop Using Its Content
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
×