By September 24, many cryptocurrency exchanges in South Korea will need to disclose risk management and partnerships with banks to ensure real people have trading accounts. Analysts say the rules could result in a list of hundreds of such alcohols as they try to negotiate with banks.
Yun, who trades in Matidium on Upbit, the country’s largest crypto exchange, said, “I must admit that I did not look at the operator’s financial details, but directly at the coin’s popularity and media and Invested based on friends’ recommendations. ” Now he worries that there may be a list of Matidium before the September deadline.
The new law was passed in early March and since then only four of the more than 60 exchanges – Subbit, Bithamb, Conon and Corbit – have entered into partnerships with banks that need to register as virtual asset service providers. Is. The law also requires them to obtain a security certificate from South Korea’s Internet Security Agency. As of May, only 20 exchanges had received such certificates. The price of Mattium on Upbit fell 94 percent to SKW 32.1 (approximately Rs. 2) from the beginning of April, as several local cryptocurrency exchanges removed dozens of alfcoins from their platforms.
At the end of June, Upbit suspended trading of 24 Altcoins such as Komodo, Edex, Libre Credit, Ignis, Pica and Lambda. Another major operator, Bithamb, lost four coins last week. Smaller operator Probit removed 145 coins at a time in June, raising concerns among investors that more coins could be withdrawn near the September deadline.
GoPex, one of Korea’s four largest exchanges and one of the most popular exchanges, said it was in talks with several banks and was hopeful of meeting all requirements before the deadline. An official from the Financial Services Commission told Reuters that transactions that did not meet the new rules would not need to be closed, but that it would not be easy for them to do business.
Meanwhile, many investors have made up their minds to “hold on to the lovely life”. This cryptocurrency deficit is known as “HODL” in the community. Lee Jae-kyung, 27, who has invested in SKW 40 crore (approximately Rs 26 lakh) in cryptocurrency, says his holdings have dropped by 56 per cent but he has no plans to reduce his losses. Is not.
“I’m going to give up my coin investment because it’s because I’ve already lost a lot, there’s no point in going back now,” Lee said. “Besides, I will hold on to it because I believe there will be another price increase by the end of this year.”