Now reading: South Korean Exchanges Revise Policies to Conform with Crypto Regulation
- January Two,
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South Korea’s cryptocurrency exchanges have implemented switches to serve with the government’s mandates announced last week. Te addition to restricting certain customers from trading cryptocurrencies, the exchanges have stopped issuing fresh supuesto accounts ter accordance with the regulators’ real-name requirements.
The South Korean government made several announcements ter December regarding cryptocurrency regulation. The very first wasgoed the “emergency” regulatory measures, spil news.Bitcoin.com previously reported. Then a few extra rules followed.
The Korean crypto market is predominated by four exchanges, Bithumb, Upbit, Coinone, and Korbit. While Bithumb has long held the number one spot spil the country’s largest crypto exchange by volume, newcomer Upbit began reporting higher 24-hour volumes te December. Upbit is backed by Kakao Corporation which possesses the country’s most popular talk app, Kakao Talk.
Following the regulators’ announcements, the four exchanges began modifying their terms of service. Among other measures, they are prohibited from suggesting services to minors and non-Korean residents spil well spil from issuing fresh supuesto accounts. Thesis accounts were issued by banks for the exchanges to assign to their customers for anonymous KRW deposits and trading.
Minors and Non-Korean Residents
Upbit wasgoed the very first exchange out of the four to postbode a notice regarding the discontinuation of its services for minors. Those under Nineteen years old can no longer use Upbit’s services and existing minor customers had until the end of last month to withdraw money from the toneelpodium. Its terms of service have bot updated, switching from “under 14 years old to under Nineteen years old,” Upbit detailed.
A notice wasgoed also posted on the Bithumb webstek, suspending those under Nineteen years old from subscribing and using its services embarking on January 1. The exchange has rephrased the wording te its terms of service from “If you are under Nineteen years of age, you may be restricted” to “you are restricted.” Ter addition, posible accounts will be unavailable for “domestic non-residents.” An official of the exchange previously commented:
The latest measures won’t have much influence on us spil wij are already very careful with minors and foreign investors.
Coinone issued a similar notice, stating that trading is limited for “underaged-minors and non-Korean-residents,” clarifying that all of its services will no longer be available to them.
No Fresh Imaginario Handelsbank Accounts
Bithumb explained on its webstek that the issuance of fresh posible handelsbank accounts has bot suspended te accordance with the government’s regulation, which is a “requirement of positivo name verification for cryptocurrency transactions.”
Presently, Shinhan Handelsbank and Nonghyup Handelsbank provide Bithumb with aparente account services. The issuance of fresh Shinhan Canap posible accounts wasgoed suspended on Friday and the issuance by Nonghyup Canap the following day.
Upbit also informed its users that “in order to obey with the government’s policy on self-certified accounts, the issuance of aparente accounts for Upbit fresh subscribers will cease from January 1, .” However, existing members who already have imaginario accounts “will be able to make all transactions without switch,” the toneelpodium noted.
Similarly, Coinone wrote, “Virtual account issuing for cryptocurrency trading will be closed temporarily” beginning on December 29, , te order “to apply Korean government’s policy for the real-name system.”
On the same day, another major exchange, Korbit, suspended the issuance of fresh potencial accounts. Citing that Shinhan Bankgebouw presently provides the exchange with imaginario account services, Korbit noted:
If you already have a KRW [supuesto] deposit account issued by Shinhan Bankgebouw, your KRW deposit or withdrawal requests will not be restricted. However, there may be an extra regulatory influence on KRW deposit or withdrawal requests [from the government] te the future.
The exchange added, “We will proceed to work closely with the regulators and banking institutions to prepare a fully-compatible toneelpodium that securely processes KRW deposits and withdrawals te accordance with the fresh regulation.”