More than 60 cryptocurrency exchanges in South Korea must notify their customers of a partial or complete suspension of trading by Friday (17/9) midnight local time, a week before the new regulations take effect.
In order to continue operating, the exchange must register with the Financial Intelligence Unit no later than September 24, by providing a security certificate from the internet security agency. They should also partner with banks to ensure accounts with real names.
According to Reuters, non-listed exchanges will have to shut down services after September 24, while those that have registered but fail to secure partnerships with banks will be barred from trading in the won currency.
"If some or all services need to be closed, (the exchange) must notify customers of the expected closing date and procedures for withdrawing money at least seven days before closing," the Financial Services Commission said earlier this week, adding that this should be completed no later than 17 September.
Of all exchanges, nearly 40 are set to suspend all services, and another 28 have security certificates but have not secured bank partnerships.
Only four exchanges, namely Upbit, Bithumb, Coinone, and Korbit, have registered and secured the partnership and so will be allowed to make permitted settlements.
Several smaller exchanges including ProBit, Cashierest, and Flybit have said that they will end trading, and that they will continue operations involving only digital coin trading until securing a partnership with a bank.
