A wave of closures has collided with South Korea’s crypto exchange, with small businesses withdrawing from the market as regulatory compliance and access to banks remain hurdles.
The crypto exchange market in Korea is becoming smaller as the number of registered virtual asset service providers has been declining since last year.
According to a report from the Financial Information Unit on February 7, there were only 31 registered crypto trading companies in South Korea at the time of reporting, a decrease of more than 26% from 42 last year, according to a report from the South Korean newspaper Dailian. reports.
Listed companies include GDAC, Probit, Huobi Korea, Bitrade and others. The report states that most exchanges that have left the Korean market are token-only platforms without Fiat support and face challenges to stay in business.
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In addition to the business hurdles, many platforms were unable to renew their registrations, leading to exclusion from the national registry, the report said.
I’ve been having trouble for a while now with only exchanging tokens that don’t have a bank account with my real name. Without Fiat trading options like the US Dollar and South Korea’s victory, these platforms have a hard time attracting users. “Over 90% of these exchanges were in full capital erosion last year,” the FIU report states. Many of these exchanges, including Qubit and Coinbit, eventually shut down.
The report also warns that the number of crypto exchanges in Korea could drop even further. While some of the companies on the list have already announced plans to leave, others have shifted their focus to overseas markets due to regulatory uncertainties.
read more: South Korean P2P CEO has been accused of using client funds to buy crypto
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