24 Crypto Exchanges licensed in South Korea, but most are stuck in crypto-to-crypto purgatory. A number of small and medium-sized cryptocurrency exchanges in South Korea. Are competing to gain a piece of the “big four” trading platforms’ vice-like grip. On the industry — but vital banking advances have proven elusive.
According to EDaily, the Financial Intelligence Unit (FIU) of the government granted operational authorization. To more than a dozen cryptocurrency exchanges last week. After conducting background checks. This takes the total number of crypto enterprises (exchanges, wallets, etc.). Registered in the country to 29 as a result of this development. Upbit, Bithumb, Korbit, and Coinone are among the “main four” cryptocurrency trading platforms. Which are consisted of five wallet operators and the “big four” cryptocurrency trading platforms. Upbit, Bithumb, Korbit, and Coinone are among the “major four” cryptocurrency trading platforms. They have obtained banking arrangements that will enable them. To give fiat on/off ramps in the future.
Several exchanges were compelled to lock their doors in the days following the registration deadline on September 24. The deadline to register was September 24. Exchanges that did not achieve real name-authenticated banking dealings. Before the deadline account for the remaining 20 firms.
They are now confined in a vanishingly small crypto-to-crypto market. Prevented from participating in their once-profitable KRW pairings — and legally prohibited from offering fiat KRW pairings. As well as from selling fiat KRW pairings in general.
The result of this position is that businesses forced to operate in a type of crypto-to-crypto purgatory. In which they are obligate to provide customers with bitcoin (BTC) pairs. That can only used to access fiat markets through the services of the “big four” cryptocurrency exchanges. Which dominate the market.
Flybit is one of them
A good example of this is Flybit, which obtained its own permit about a month ago. And claimed to engaged in “leading socially responsible business activities”. As well as “promote client loyalty”. Highlighting the fact that its “capital” was the “second-largest”. “Among cryptocurrency exchanges” in South Korea.
Following this, according to the Daily Hankook, the company has hired senior executives. From major banking franchises, including NongHyup and Kookmin, among others. And has expanded its operations.
A Financial Action Task Force (FATF) Travel Rule-compliant data platform has also implement. By the corporation, according to EDaily, months before legislation passed. That will compel data platforms to comply with the rule.
In addition to these larger exchanges, smaller exchanges of similar magnitude are striving to break free. From the crypto-to-crypto limbo, and some appear to be hopeful that they will be successful in their endeavors. According to a report in The Bell Korea, the Korea Real Estate Investment & Trust. Has taken an 8 percent stake in Huobi Korea, which is a cryptocurrency exchange. This is an unusual course of action. In accordance with reports, the exchange is optimistic. In its ability to find a banking partner within the next calendar year of 24 crypto.
Another story from the same media site claims that Hanbitco has “just started talking. With a number of banks” about prospective partnership opportunities. A last-minute agreement with Gwangju Bank came down to the wire on deadline day (September 24th this year),. While a potential Jeonbuk Bank arrangement fell through for rival Gopax on the same day as well 24 crypto.