South Korea’s financial regulators have published a list 28 cryptocurrency exchanges that partially meet the requirements to remain open beyond Sept. 24, under the country’s new crypto regulations.
The amended Act on Reporting and Using Specified Financial Transaction Information (Act on Reporting and Using Specified Financial Transaction Information) requires that cryptocurrency exchanges obtain Information Security Management System certification (ISMS), by September 24, and then submit a report (FIU), a division under the Financial Services Commission (FSC). Failure to comply with this requirement will result in the cessation of operations for crypto exchanges by September 24.
Jeon Yo-seop is the head of FIU’s Planning and Coordination Office. He explained that, given the near deadline:
It is unlikely that additional virtual asset trading platforms will be certified.
These 28 exchanges have been ISMS-certified: Gopax. Korbit. Bithumb. Hanbitco. Casherest. Tennten. Dove Wallet. Flybit. Gdak. Flybit. Flybit. Flybit. Flybit.
Crypto exchanges cannot trade in Korean won (KRW) without partnering with banks. They must partner with banks to offer real-name verification deposit/withdrawal account.
Only the top four cryptocurrency exchanges in the country – Upbit and Coinone – have managed to form partnerships with banks. Banks have been reluctant to work with crypto exchanges because of potential money laundering risks.
Even if they have ISMS certification, crypto businesses without banking partners must stop trading in the KRW markets. This means that 24 of the 28 exchanges are crypto-only.
South Korean financial authorities have also issued guidelines for closing down businesses to the cryptocurrency sector. At least seven days prior to the closing date, exchanges must inform users about the closing date and the method they can withdraw funds. Users must be allowed to withdraw funds within a period of 30 days after the closing date.
According to reports, the Korean authorities are monitoring any crypto exchanges that may close down in order to make sure they return funds to customers.