Hassan Maishera
South Korea is becoming a hot territory for crypto exchanges, and some of them are already halting their services ahead of regulatory crackdown.
LINE will discontinue exchange services in South Korea soon
The cryptocurrency exchange operated by Japanese tech giant LINE is set to stop providing services in South Korea by next month. The exchange could be joined by other foreign trading platforms ahead of a regulatory crackdown in the Asian country.
According to a report from local media outlet Yonhap earlier today, the move is due to the regulators in South Korea introducing tighter regulations for cryptocurrency exchanges. The report said, “Bitfront, a U.S.-based cryptocurrency exchange set up by the messaging app company Line, has said it will stop providing a Korean-language service on Sept. 14”
The cryptocurrency exchange added that it would also discontinue payments with Korean credit cards on Sept. 14. South Korea has implemented tight regulations for cryptocurrency exchanges operating in the country.
Under the new law, banks have been ordered to issue real-name accounts according to stricter guidelines to prevent money laundering. The new regulation will come into effect on September 25, and crypto exchanges will be banned from withdrawing fiat currencies for cryptocurrency trading if they have no real-name bank accounts.
Some exchanges have already started withdrawing their services in South Korea. Leading crypto exchange Binance announced last week that it would be ending support for Korean Won trading pairs and remove payment options in the country.
The move would leave South Koreans with limited options to access the cryptocurrency market. Regulatory agencies in various parts of the world have taken the cryptocurrency market seriously and are working on various regulations to ensure the protection of investors.
While the cryptocurrency market is still in its early stages, more regulations should be expected over the coming months and years.
