More than 60 South Korean cryptocurrency exchanges must notify users of a partial or total halt of trading by Friday midnight, a week before a new legislation takes effect.
Exchanges must register with the Financial Intelligence Unit by September 24 and provide a security certificate from an internet security agency in order to maintain operations. They must also collaborate with banks to guarantee that real-name accounts are maintained.
Exchanges that have not registered must close their doors on September 24, while those that have registered but have not secured partnerships with banks will be barred from trading in won.
“Should any or all services need to be discontinued, (exchanges) should advise consumers of the planned closing date and withdrawal procedures at least seven days before the closure,” the Financial Services Commission stated earlier this week. It was stated that this should be completed by September 17.
Nearly 40 exchanges are slated to cease all services. A further 28 have security certificates but no bank partnerships.
Only four companies, Upbit, Bithumb, Coinone, and Korbit, have established and acquired partnerships, allowing them to make won payments.
Some smaller exchanges, like as ProBit, Cashierest, and Flybit, have already stated that they will discontinue won trading and focus solely on digital coin trading until they can secure relationships with banks.