South Korean Crypto Exchange Gopax Faces Closure

Twenty-four crypto exchanges in South Korea are in limbo as they only complied with one of two new regulatory requirements. As a result, the financial authorities asked them to suspend all functions of transferring cash to cryptocurrency until the specified requirements are fully met.

To continue operating, exchanges must register with the Korea Financial Intelligence Unit (KFIU) by September 24th. Exchanges not registered with KFIU must cease their activities. In addition, crypto exchanges must get banking contracts so that customers can have accounts in their real names. Thus, regulators intend to reduce the risk of crimes such as money laundering and price manipulation in the crypto market. If an exchange registers with KFIU but does not provide customer identification, it will be prohibited from trading.

Until September 24, Gopax will continue to provide its cryptocurrency trading services with Korean won as usual. While the crypto exchange is looking for a banking partner. Most local banks refuse to cooperate with the country's crypto exchanges. If negotiations with banks do not resolve the problem, Gopax will inform users in a subsequent notification about the end of support for spot transactions, deposits and withdrawals.

Image: Kryptomoney