Over 60 South Korean crypto exchanges set to suspend services next week

FILE PHOTO: Representations of cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, Litecoin are placed on PC motherboard in this illustration taken, June 29, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

SEOUL — More than 60 cryptocurrency exchanges in South Korea must notify customers of a partial or full suspension of trading by Friday midnight, a week before a new regulation comes into effect.

To continue operating, exchanges must register with the Financial Intelligence Unit by September 24, providing a security certificate from the internet security agency. They must also partner with banks to ensure real-name accounts.

Exchanges that have not registered must shut down services after September 24, while those that have registered but failed to secure partnerships with banks will be prohibited from trading in won.

“Should some or all services need to be closed, (exchanges) should notify customers of the expected closing date and procedures to withdraw money by at least seven days before the closure,” the Financial Services Commission said earlier this week. It said this should be completed no later than September 17.

Of all exchanges, nearly 40 are set to suspend all services. A further 28 have security certificates but have not secured bank partnerships.

Just four – Upbit, Bithumb, Coinone, and Korbit – have registered and secured partnerships and so will be allowed to make won settlements.

Some smaller exchanges including ProBit, Cashierest, and Flybit have already said they will end won trading, and that they will continue operations involving only digital coin trading until securing partnerships with banks.