Cryptocurrency exchange Bybit has halted operations in South Korea. A prominent cryptocurrency exchange in South Korea is closing down due to a looming regulatory deadline.
Before a licence deadline, Bybit, one of the world’s leading bitcoin derivatives exchanges, will suspend certain of its services for South Korean users.
On Friday, the exchange announced that Korean language support on its platforms, as well as its official South Korean community on social media, would be discontinued. The suspensions will go into effect on Monday.
“Bybit products and services are still available to Korean traders. However, these products and services will no longer be available in Korea,” says the company.
Consequences of the new regulations
Local and foreign exchanges operating in the country that offer Korean language support or won-denominated trading pairs must comply with the new Anti-Money Laundering regulations.
As a result, some big foreign exchange firms decided to stop their services in the country. Rather than comply with the new strict criteria of establishing real-name accounts through a local bank. Binance halted won trading pairs and eliminated Korean language support from its website earlier this month.
Bybit will deactivate the features before the September 24 deadline for cryptocurrency businesses to apply for an official operating licence. “On this, we held discussions with Korean regulators”.
“We were advised that licences will only be provided to local businesses, which we couldn’t do because of our setup”. “No representation from Bybit is available”.
The exchange platform announced today that it “accepts its responsibilities as an exchange and an industry leader. In actively collaborating with rules imposed by various jurisdictions to promote financial inclusion and the general development of the crypto sector.
According to a Bybit spokeswoman, “the majority of the exchange’s trading comes from Europe. With European accounts accounting for more than half of all trading volumes”.
Delaying tax regulations on cryptocurrency is “inevitable,” according to a South Korean politician.
According to the South Korean Financial Services Commission, crypto platforms that did not apply for a licence must notify their customers of an expected closing date and withdrawal processes “at least seven days before the closure,” presumably by Friday, Sept. 17. According to Reuters, more than 60 cryptocurrency exchanges in South Korea required to notify consumers of a partial or complete trading halt by Friday at midnight.