Cryptocurrencies, News

More than 60 S.Korean cryptocurrency exchanges will suspend their services next week

SEOUL, September 17, 2017 (Reuters) – More 60 South Korean cryptocurrency exchanges must inform customers about a partial or complete suspension of trading by Friday night, one week before a new regulation takes effect.

Exchanges need to register with the Financial Intelligence Unit before Sept. 24, and provide a security certificate issued by the internet security agency, in order to continue operations. To ensure that real-name accounts are protected, they must partner with banks.

After Sept. 24, exchanges that are not registered will close their services, while those who have registered but have failed to obtain partnerships with banks won’t be able to trade in won.

The Financial Services Commision stated earlier this week that exchanges should inform customers about the closing date and withdraw procedures if any services are to be shut down. This should be done no later than September 17.

Nearly 40 exchanges have announced that they will suspend all services. Another 28 exchanges have security certificates, but they have not secured bank partnership.

Only four people – Upbit and Coinone, Coinone, and Korbit – have registered partnerships and will be permitted to settle won settlements.

Flybit, Cashierest, ProBit and Cashierest, all smaller exchanges, have already stated that they will stop winning trading and will continue trading digital coins until they secure partnerships with banks.