The fearful September 24 deadline for crypto exchanges and service providers in South Korea to acquire the maximum registration requirements has come and gone, with only twenty-nine crypto exchanges surviving the axe. However, only 4 fully registered exchanges would be able to offer the Korean Won for trading.
Months ago, authorities in the Asian country mandated crypto exchanges and services providers under the new crypto regulation (Act on Reporting and Using Specified Financial Transaction Information) to meet two requirements before September 24.
The first of the requirements was to acquire the Information Security Management System (ISMS) certification, proving that they can secure customers’ personal information.
The second requirement was for them to secure a partnership with any Korean Bank, which would help them facilitate crypto users’ withdrawals and deposits using real-name accounts. This would enable the exchanges to offer trading options in Korean Won.
On Saturday, the highest financial regulator in the country, Financial Services Commission (FSC), revealed that only 29 of the embattled crypto exchanges met the first requirement which is obtaining the ISMS certification. The regulator continued that it would review the applications from these exchanges within the next few months.
Out of these 29, only four exchanges, including Upbit, Bithumb, Coinone, and Korbit, are eligible to offer crypto trading activities for users in Korean Won. This is because they successfully secured a partnership with banks as demanded by the law. As a result of this, the other 25 exchanges’ operation is limited to crypto-only.