thecoinrepublic.com
- Bitfront, a crypto trading platform located in the United States, has announced that it would cease operations in South Korea before harsher industry regulations take effect in September, according to Korean media
- Bitfront will stop marketing to Korean consumers using social media platforms like Facebook, Telegram, and Line this month, according to the Korea Economy Daily, which cited industry insiders on Tuesday. Bitfront’s website is still available in Korean at the time of writing
- After a six-month grace period, the tougher restrictions, which were established with the amended Special Funds Act, which went into effect on March 25, will be implemented in September
Bitfront, a crypto trading platform located in the United States, has announced that it would cease operations in South Korea before harsher industry regulations take effect in September, according to Korean media. Korean traders can now use the exchange, which is a subsidiary of Japanese tech giant Line. With tougher restrictions on the horizon, Bitfront, a digital asset exchange, is said to be joining the list of platforms intending to exit South Korea’s bitcoin industry. According to Korean media, the U.S.-registered business, which was founded by the Japanese messaging app giant Line, will limit its services in the nation next month.
The exchange will discontinue providing Korean-language service in mid-September, according to Yonhap. Bitfront also announced it will cease payments using Korean credit cards on September 14 due to the tighter regulations, the news agency reported in a piece on international crypto exchanges getting away from South Korea ahead of the forthcoming reforms. Bitfront will stop marketing to Korean consumers using social media platforms like Facebook, Telegram, and Line this month, according to the Korea Economy Daily, which cited industry insiders on Tuesday. Bitfront’s website is still available in Korean at the time of writing.
After a six-month grace period, the tougher restrictions, which were established with the amended Special Funds Act, which went into effect on March 25, will be implemented in September. They mandate that crypto trading platforms register with Korea’s anti-money laundering agency, the Financial Intelligence Unit (FIU), by September 24 and work with domestic banks to provide real-name accounts. Failure to comply might result in access being banned, fines, and even criminal charges.
Over two dozen exchanges targeting Korean citizens were cautioned by the country’s Financial Services Commission (FSC) in July. Because Korean banks are concerned about money laundering, fraud, and other crypto-related concerns, smaller and foreign-based exchanges have had difficulty securing a relationship with a local financial institution.
According to Yonhap, exchanges will be prohibited from withdrawing money for bitcoin trading starting September 25 if they have not installed real-name bank accounts. Last week, Binance, the world’s largest cryptocurrency exchange, announced the discontinuation of a variety of products and services in South Korea. This move, which was announced on Friday, includes the removal of Korean won trading pairs and payment alternatives, as well as P2P merchant apps and Korean language support. Another foreign digital asset market, FTX Trading, deleted Korean from its website’s language options on Wednesday.