The final deadline for registration for crypto exchanges in South Korea came to an end on September 24. And out of 40 odds crypto exchanges left in the country, only four made the final cut. South Korea’s latest AML guidelines which came into effect in January require crypto exchanges to do away with shadow banking accounts and partner with banks to offer real banking facilities to the customers. However, out of 300 odd crypto exchanges functional at the time only a fractional four has made the final cut.
The Financial Service Committee (FSC) had extended the deadline for registration to September 24 after none of the crypto exchanges came forward until the first deadline in March. However, even after the second extension, only four could make the final cut. The four crypto exchanges that would now legally operate under the new guidelines would include Upbit, Bithumb, Coinone, and Korbit.
Among smaller exchanges, Gopax was the only one that tried till the last moment to get a banking partnership but on Friday it revealed that none of the regional banks were ready for a partnership. Upbit has an agreement with internet-only K bank, Bithumb and Coinone are with NongHyup Bank, and Korbit with Shinhan Bank.
Four Crypto Exchanges to Rule the Entire South Korean Crypto Market
The four registered crypto exchanges would now be solely responsible for the whole crypto trading in South Korea unless other crypto exchanges apply for a license. As per data released by Rep. Noh Woong-rae of the ruling Democratic Party of Korea earlier this month, the mentioned four crypto exchanges control 97.5% of the South Korean crypto market.
Banks have been reluctant in participating with the crypto exchanges fearing loss of trust in case crypto exchanges face any issues. But, the lack of competition in the market could also become a key issue in the future.
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