US-based crypto trading platform Bitfront will discontinue services in South Korea before stricter rules for the industry go into effect in September, Korean media reported. The stock exchange, a subsidiary of the Japanese tech giant Lines, is currently available to Korean traders.
Line Bitfront Exchange Service Kills Korean Cryptocurrency Traders
With stricter regulation on the horizon, digital device exchange Bitfront is said to join platforms planning to exit the South Korean crypto market. The US-registered organization, created by the Japanese messaging app company Line, will limit its services in the country next month, according to Korean media.
According to Yonhap, the stock exchange will stop offering the service in Korean in mid-September. “Referring to the stricter rules, Bitfront also said it would stop paying with Korean credit cards on September 14,” the news agency detailed in its report on foreign cryptocurrencies “looking for distance” from South Korea ahead of the next changes. .
Bitfront will discontinue its Korean marketing activities through social media channels such as “Facebook, Telegram and Line for its Korean customers this month,” the Korea Economy Daily added, citing industry sources on Tuesday. At the time of writing, the Bitfront website is still available in Korean.
Foreign cryptocurrencies are leaving South Korea due to legislative changes
The stricter rules introduced by the Special Funds Law, which took effect on March 25, will apply in September after a six-month grace period. They require cryptocurrency trading platforms to register with the Korean Anti-Money Laundering Organization, the Financial Intelligence Unit (FIU), by September 24 and work with domestic banks to issue real-name accounts. Non-compliance can lead to access restrictions, sanctions, and even criminal prosecution.
In July, the country’s Financial Services Commission (FSC) warned Korean citizens about more than two dozen stock exchanges. Smaller, overseas-based stock exchanges have a hard time partnering with a local banking institution because Korean banks fear money laundering, fraud, and other risks associated with encryption. As of September 25, stock exchanges will be prohibited from raising money for cryptocurrency trading if a real-name bank account has not been implemented, Yonhap noted.
Binance, the world’s leading cryptocurrency, announced last week that it will complete a range of products and services in South Korea. This decision, announced on Friday, includes the elimination of trading pairs and payment options for the Korean won, as well as peer-to-peer (P2P) trading applications and Korean language support. On Wednesday, another overseas digital device exchange, FTX Trading, removed the Korean language from the language options available on its site.
What do you expect from the future of the South Korean crypto market? Share your thoughts on the matter in the comment section below.
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