By the September 24th, the exchange di cryptocurrency who intend to operate in South Korea del Sud must register with the Financial Intelligence Unit. By not doing so, they risk the closure of their business within the country.
A problem of no small importance, as the requirements indicated for the acceptance of their registration include a series of extremely stringent rules. Which few, in fact, are able to observe. So much so that in the end there may be no more than two or three platforms capable of doing this.
The first of them is Upbit, which has already taken steps to regularize its position by establishing relations with the first k-bank in the country. At least according to the news that has leaked over the last few days.
Upbit did it: what about the others?
In this real race against time, the first winner was Upbit. The exchange, the largest in the Asian country, in fact he managed to register regularly. To do this, it had to circumvent what is indicated as the main obstacle in this sense, namely the creation of relationships with banks in order to obtain accounts for the verification of the real name.
A problem with which all other similar structures are colliding. With the exception of Bithumb, koinon e sorbitan mono, which for their part have launched agreements with some banks and which, consequently, could be the next to ask for registration with the Financial Intelligence Unit. While Binance he decided to limit his presence in Seoul on 13 August, when it stopped offering trading pairs and payment options with the South Korean won.
The sector could be wiped out
Doh Gyu-sang, vice president of the FIU, predicts that one or two other exchanges will register by the end of August. Local media reported his opinion on Friday. For all the others one is expected real race against time.
In which, however, the very need to establish relationships with banking institutions could prove to be the most difficult obstacle to overcome. Without them, in fact, it would become impossible to issue real-name accounts. Joining in this sense the difficulty of obtaining the information security management system certification (ISMS). Given that there is only one month left until the deadline indicated by the Financial Intelligence Unit, fears of an imminent closure of South Korean exchanges are mounting evidently.
There are about two hundred cryptocurrency exchanges in South Korea
To understand the matter better, it is also necessary to remember that there are over 200 platforms of this kind operating in South Korea. An impressive phenomenon, therefore, which risks crashing into the new regulation on digital assets that was approved in Seoul. Enough to push the number one of the Financial Services Commission, Eun Sung-Soo, to affirm in April that in the face of the bottlenecks imposed by the revision of the Special Funds Act (Act on Reporting and Using Specified Financial Transaction Information), there was the serious risk of a real clean sweep of the sector. The statement was released at a meeting of the National Assembly's Political Affairs Committee, causing considerable uproar. Practically being confirmed in the following weeks, when the platforms came to collide with reality.