Regulatory war brings small crypto exchanges in South Korea to the brink of abyss

According to the Financial Times, while South Korean cryptocurrency exchanges are less than four months away from securing their business licenses, most are struggling to meet the new legal requirements. South Korea is considered one of the most active crypto markets in the world, with recent reports claiming that many workers in their 20s and 30s quit their jobs to become full-time crypto traders. At times this enthusiasm inflated the Bitcoin price on local exchanges, and the so-called Kimchi premium rose to 22% once earlier this year. South Korean regulators have also been very cautious and have taken various measures to ensure users and businesses are complying with the rules. According to the amendment to the law on the declaration and use of certain financial information adopted by the National Assembly in March 2020, cryptocurrency trading platforms will have to comply with the Action Group's guidelines. (FATF) on the fight against money laundering and financing of terrorism. In addition, exchanges must be approved by the Financial Services Commission (FSC) and the Korean Internet and Security Agency by September 24 in order to operate in the country. . Including real verification systems requiring partnerships with approved financial institutions. While major Korean exchanges such as Upbit, Bithumb, Korbit and Coinone are reported to have secured the necessary banking partnerships and are preparing to sign up for FSC, many smaller platforms are struggling. Despite being popular in South Korea, banks are still reluctant to do business with cryptocurrency companies. Of particular concern to banks is that they will be responsible for any illegal activity related to cryptocurrencies. Crypto crisis in South Korea “We are facing an existential crisis. We want

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