South Korean crypto currency clears $ 2.6bn from ‘kimchi currency’

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South Korean cryptocurrency exporters are trying to lose more than Won3tn ($ 2.6bn) while two-thirds of the country’s currency exchanges are set to be wiped out by the completion of one of the world’s largest digital markets.

The Financial Services Commission, South Korea’s financial regulator, has set up Deadline for September 24 that foreign and local exchanges register as legitimate trading platforms, another part of the need to tighten control over the country’s festive part.

But international exchanges are struggling to achieve this, with about 40 South Koreans expected to be shut down, according to insiders and regulators.

The crypto trade in South Korea is controlled by four major exchanges – Upbit, Bithumb, Korbit and Coinone – which account for more than 90 percent of all transactions in the country.

The low price block could also deal with 42 kimchi currencies, other digital currencies listed on local exchanges and traded mainly in Korea, according to comparisons by Kim Hyoung-joong, a professor and director of the Cryptocurrency Research Center at Korea University.

Most companies point out that digital currencies other than bitcoin make up about 90% of South Korean crypto trading, indicating that the market is highly volatile.

“A similar situation with banks is expected near the last day because depositors will not be able to get their ‘alt-coin’ money that is only traded in small markets,” said Lee Chul-yi, Foblgate’s chief of staff. “Suddenly he will be poor. I wonder if moderators can deal with the consequences. ”

The FSC has recommended exchanges that do not meet the requirements for notifying their clients of the closure by Friday, September 17th.

In order to be licensed as a valid platform, South Korean crypto exchanges must partner with local banks to open specific customer bank accounts. But local lenders are refusing to do so for fear of having them extort money financial cases.

Approximately 20 exchanges have achieved some of the basics in establishing personal security systems and have been allowed to offer crypto-to-crypto business services. But industry observers say employers still find it difficult to survive, given the size of their business.

“Serious losses for retailers are expected when the business is suspended and goods are stored in multiple exchanges because customer security is not at the forefront of exchanges that are about to close,” said Cho Yeon-haeng, president of the Korean Finance Consumer Federation.

These laws will also affect the international exchange that provides successful trade. The FSC has sent notifications to 27 foreign exchange exchanges running operations for Korean traders.

Binance, the world’s largest crypto exchange, last month suspended its trading-to-crypto business to “strictly comply with local regulations”, the first such move from a major foreign regulator.

The Korean winner is the third most widely used bitcoin currency, after the dollar and the euro, accounting for about 5% of global trade, according to a study from Coinhills.

Authorities expect the reform to be disruptive crypto disruption in South Korea. Many young South Koreans – who are experiencing it high unemployment and rising corporate prices – they are still interested in buying digital goods, despite the economic downturn.

Bitcoin has been moving steadily this year, rising to over $ 60,000 in April before falling to $ 30,000 in June.

Since then it has returned about $ 46,000, driven by risky bets by developing countries including Pioneering in El Salvador of digital currency as acceptable.