Revised Law on Coin Exchanges to Take Effect on Sept. 25
With the revised Act on Reporting and Use of Specific Financial Transaction Information scheduled to take effect on Sept. 25, foreign cryptocurrency exchanges are closing their services in South Korea one after another in order not to violate the law.
Bitfront announced on Aug. 15 that its services in Korean can no longer be provided for the law and the South Korean government’s guidelines. “Payment by local credit card and customer inquiries in Korean will become unavailable on Sep. 14,” it said, adding, “Our marketing in Korean on Facebook, Telegram, Line and the like will be closed late this month.” Earlier, Binance said on Aug. 13 that it would stop providing certain services in South Korea.
The Financial Services Commission is planning to regulate foreign cryptocurrency exchanges doing business in South Korea without reporting to the Korea Financial Intelligence Unit. The unit already sent a letter to 27 exchanges to notify them of the potential regulation.