South Korea continues the pressure on Bitcoin and altcoin trading. More than 60 cryptocurrency exchanges in South Korea must notify their customers of a partial or total suspension of trading by midnight on Friday, a week before a new regulation takes effect.
South Korea’s crackdown on Bitcoin and altcoin trading continues
In order for exchanges to continue operating in South Korea, they must register with the FIU and obtain a security certificate from the internet security agency by September 24. In addition, customers need to partner with banks to provide accounts with their real names. Exchanges that do not register will have to close their services after September 24. Those who register but cannot form partnerships with banks will be banned from trading in South Korean won.
As we reported on , the Financial Services Commission said earlier this week, “If some or all of the service is required to be closed, (exchanges) should notify customers of the expected closing date and withdrawal procedures at least seven days before closing.” He said that this notification process should be completed by 17 September at the latest.
40 of exchanges suspend trading
About 40 of all exchanges will suspend all services. Another 28 have security certificates but did not provide bank partnerships. Only four exchanges – Upbit, Bithumb, Coinone and Korbit – have registered and secured partnerships. Therefore, they will be allowed to continue their service. Some smaller exchanges, including ProBit, Cashierest, and Flybit, have said they will end trading and continue operations that only involve cryptocurrency trading until they form partnerships with banks.
On the other hand, according to another report this week, South Korea plans to pass a bill that could delay the taxation of cryptocurrency investors. South Korea’s ruling Democratic Party plans to delay its upcoming taxation policy towards cryptocurrencies. According to officials, the issue of taxing Bitcoin and altcoin investors still lacks proper infrastructure. They even passed a bill that could suspend legislation that should go into effect in early 2022, according to a recent report.