Exchanges In South Korea Shut Down Cash-To-Crypto Trading Services

An average crypto exchange named Foblgate declared that it would terminate the trading of the KRW (Korean won) thereof before the government mandate for prohibiting the digital asset venues prohibiting them from running cash-to-crypto offers and services without making a partnership with a native bank. As per the announcement, the KRW deposit and withdrawal has been suspended temporarily, along with the trading among the Korean won and cryptocurrencies. Rather, it stated that it would run a BTC (Bitcoin) market to allow the consumers to trade Bitcoin with altcoins.

It was further added in the announcement that notwithstanding the compliance of the company in fulfilling its obligations of getting the certification from the ISMS (Information-Security-Management) as well as creating an AML (Anti-Money-Laundering) system, it was unable to completely abide by the crypto regulations of the government which left Foblgate with no choice other than shutting down its market of KRW. The firm’s head, Lee Chul-Yi, stated that it expects just a bank-run-like situation shortly so that a closure has been implemented on the investors to withdraw the altcoin on the minor exchanges.

The new crypto regulations of South Korea ordered the exchanges to obey two prominent standards. The first is to acquire an ISMS certification, and the second is to make a contract with any of the native banks that will allow the customers to go on with their real name for deposit and withdrawal accounts. In this respect, the exchanges which remained unable to attain an ISMS certification till the 24th of September will forcibly be shut down. Whereas the other already certified exchanges, which do not have the accounts containing real names required to terminate the continued operations regarding cash-to-crypto services along with notifying the consumers about it on 17th September.

Various other exchanges within the country have also declared a closure for the services of KRW-to-crypto. Coredax disclosed that on the 8th of September, its KRW market would be closed while Bitcmon and Flybit announced similar actions to be taken on the 10th of the respective month. Foblgate and these exchanges have in advance informed their clients to do their best for attaining the contracts regarding the bank accounts having real names during the upcoming period for reopening the respective markets for cash-to-crypto transactions.