Now there are only a few months before the South Korean crypto-regulations kick in, things are becoming tougher for the South Korean crypto-exchanges. Initially, the regulations were to be implemented at the beginning of January 2021. However, after receiving several requests from the crypto-association, the South Korean government gave an extension to the regulatory implementation.
In the request for an extension, the crypto-firms mentioned that it would take time for the platforms to fully adopt the new regulations. Therefore, things would become complicated if the regulations are implemented in January 2021. Initially, it was requested by the South Korean regulatory authorities to give an extension till the end of 2021.
However, the South Korean authorities did not go with the proposal but decided to extend it till March 2021.
Now as the extension is just two months away from ending, the cryptocurrency exchanges are now becoming active. The exchanges are getting rid of any policies or processes they had in place that coincided with the new regulations.
As the first step in becoming adherent to the new regulations, the cryptocurrency exchanges in South Korea have started banning order book sharing with foreign cryptocurrency exchanges.
By banning the order book sharing, things have become difficult for the cryptocurrency exchanges in South Korea. There are some cryptocurrency exchanges that have already started shutting down their services in the country. Binance Korea is one of the first cryptocurrency exchanges that have announced the closure of their services in South Korea in the following months.
What comes as a shock to the entire crypto-community is that there are only 4 cryptocurrencies in South Korea that are following the new guidelines. Apart from these 4, there are 73 cryptocurrency exchanges in the country that are going to have a hard time adopting the new regulations.
It has been confirmed why Binance Korea decided to shut down its operations in the South Korean region. The very reason behind its shut down is the discontinuation of order book sharing with foreign platforms. Binance Korea is the arm of Binance, which is the largest cryptocurrency exchange in the world. The firm announced with the banning of order book sharing, it will not be able to share the details with its international platforms.
This is the reason why Binance Korea has taken the step of shutting down its operations in the country.
However, there other cryptocurrency exchanges that are complying with the new regulations. One of the major cryptocurrency exchanges ‘Huobi Korea’ has confirmed that it will stop order book sharing service with its international branches.
Another cryptocurrency exchange is known as ‘Digifinex Korea’ also follows Huobi Korea in the banning of order book sharing.