To comply with government regulations, South Korean digital currency exchanges are reducing their trade lists

0
1679

South Korean platforms are progressively cleaning out their trade listings in order to comply with government restrictions on the digital currency industry.

They have temporarily halted or even stopped trade in some high-risk small currencies.

Previously, eleven of the twenty exchanges that had acquired the Information Security Management System certificate required to operate had either suspended trading of some currencies or issued a list of currencies that consumers should avoid.

Upbit, a Korean exchange, has moved to remove five currencies: Paycoin, Maro, Observer, Solve. Care, and Quiztok, while also placing 25 currencies on its notice list.

While it is usual to halt coin trade, industry observers believe that the current trend is driven by the need to fulfill regulatory approval requirements from the government.

The government appointed the Financial Services Commission as the entity in charge of overseeing and supervising the digital currency market in the previous month.

South Korea Moving Towards Cryptocurrency Acceptance | Bitcoinist.com

Platforms in Korea must now collaborate with local banks to create real-name bank accounts for users by September 24th in order to function as a legitimate trading platform.

Nevertheless, the platforms’ efforts to conform to these laws have sparked a market panic.

The values of all five currencies that Upbit said it would stop trading plummeted, with Quiztok losing over 68 percent of its value.

Experts caution that such measures, which are based on the platforms’ own criteria, might generate market uncertainty, particularly because the identical coins may still be exchanged on other platforms.

The Financial Supervisory Service previously wrote exchanges, requiring for a list of the currencies that have been stopped or placed on a caution list, and it is considering tightening restrictions even more.

LEAVE A REPLY

Please enter your comment!
Please enter your name here