According to the Korea Herald report, the time has run out for cryptocurrency exchanges to announce the closure of their services if they would not be operable after Sept. 24, marking a critical time that will decide the fate of many crypto exchanges in South Korea. The new regulatory overhaul is expected to cost several crypto businesses to shut down.
More than 30 cryptocurrency exchanges were expected to give notice of a service shutdown.
According to industry sources, more than 30 crypto exchanges were expected to give notice for a service shutdown by the end of Friday, as 24 exchanges have not applied for the Information Security Management System, and ten even failed to acquire a certificate. As of Friday, only 28 out of 66 identified exchanges in South Korea have the appropriate system designated by authorities designed to proactively limit any security breaches. South Korea has been among the few countries that have been on top of crypto regulations from the very beginning.
The anti-money laundering act requires crypto to form partnerships with local banks.
Last month, the Financial Services Commission recommended crypto exchanges expecting suspension to make an announcement at least one week prior to their shut down and offer detailed information such as the schedule and refund methods. And a string of closures is expected after Sept. 24, when the six-month grace period of the Act on Reporting and Using Specified Financial Transaction Information expires. The anti-money laundering act requires crypto exchanges to be equipped with ISMS and to form partnerships with local banks by Sept. 24. Upbit, Bithumb, Coinone, and Korbit are the only four crypto exchanges that have registered with the Financial Intelligence Unit, the anti-money laundering body, with both ISMS and a real-name bank account system in place.