In South Korea, due to amendments to the current law on financial transactions, crypto exchanges will have to comply with strict banking rules. These rules require all customers to use individual, real-name, exchange-linked bank accounts that are guaranteed by social security numbers. Currently, only the “big four” exchanges of the country Upbit, Bithumb, Korbit and Coinone adhere to these rules. But even they do not always succeed.
Currently, there are about 200 crypto exchanges in the country, most of which are SMEs. Their number may be reduced to 10 by next year already. Under the new rules, exchanges can sign deals with banks only on a six-month basis. The resumption of the transaction process is costly and disadvantageous. In addition, banks are worried that they may become “overloaded” when working with exchange clients.
For non-compliance with the rules, fines of up to $41,000 or imprisonment of up to five years may be imposed. Representatives of the banking industry are of the opinion that in this regard, the closure of exchanges is inevitable.