Starting in January, Coinone, a South Korean cryptocurrency exchange, will no longer accept token withdrawals to unconfirmed external wallets.
Coinone stated in a statement on Wednesday that users will have until January 23. In order to register their external wallets with the exchange, after which withdrawals will be limited. The exchange stated that crypto users could only register their own wallets. And that the verification procedure “may take some time” and that it might change at any time.
Coinone planned to verify users’ names and resident registration numbers. Which granted to all South Korean residents. In order to guarantee crypto transactions were “not in use for unlawful activities such as money laundering,” according to Coinone. Customers at the exchange will certainly not have permission to withdraw funds to wallets unless KYC protections are in place. The popular hardware wallet Ledger is likewise subject to this limitation.
The South Korean government enacted a previously passed bill in March. Requiring local crypto exchanges to meet standards for a real-name account and ISMS verification. As well as provide a six-month report on their activities. In addition, crypto users in the country will see the adoption of a tax rule set to take effect in January. Which would apply capital gains taxes on all crypto trading profits exceeding $2,300.
In response to Korean lawmakers’ push to regulate cryptocurrency, many exchanges, including Bithumb, have announced limits as well as tighter KYC and AML checks. Coinone will almost certainly continue to accept wallets from exchanges that have already passed KYC checks, such as FTX and Binance.