A wave of closures has struck the exchanges of South Korean cryptography, small businesses leaving the market while regulatory compliance and banking access remain obstacles.
The South Korea Crypto exchange market becomes smaller, as new government data show that the number of recorded virtual asset service providers has dropped since last year.
A report of February 7 of the Financial Intelligence Unit revealed that in press times, there are only 31 crypto negotiation companies recorded in South Korea, down more than 26% compared to 42 the Last year, South Korean newspaper reports.
Radored companies include GDAC, Probit, Huobi Korea and Bitrade, among others. The report indicates that most of the exchanges that left the Korean market were platforms only in token without Fiat support, which encountered difficulty staying in business.
In addition to commercial obstacles, many platforms have failed to renew their inscriptions, thus leading to their exclusion from the country’s register, notes the report.
Exchanges in tokens only, which have no real bank accounts, have been in difficulty for some time. Without trading fiat options such as the US dollar or the Korean has won, these platforms find it difficult to attract users. The FIU report indicates: “More than 90% of these exchanges were in a state of capital erosion last year.” Many of these exchanges, which are qued and coincidence, end up being closed.
The report also warns that the number of crypto exchanges in South Korea could still decrease, because some companies on the list have already announced exit plans, while others are focused on foreign markets due to the regulatory uncertainty.
