South Korean crypto traders are now forced to respect the regulation in force in case they want to continue sharing their services. Otherwise, they will have to block their provision activities.
New information has circulated today in the online media. The South Korean crypto exchange, called Coinpia, has suspended the ability of making deposits using the fiat currency as well as the trading activities.
Coinpia encountered difficulties in complying with the new regulation, especially with the Know-Your-Customer (KYC) policy. The platfom was forced to close because of the lack of enough time to adapt to the new country’s laws related to crypto activities.
Every company involved in cryptocurrency trading is compelled to comply with the KYC law. This implies that the platform has access to the personal information about their clients. Among them we can mention: user’s full name, residence address, citizenship, birth date, photo of government issued ID, social security number, bank statement, utility bill and photo of bank card (only if it necessary for fundings).
We want to remember you that starting with 30 January 2018, all the unknown institutions that have virtual bank accounts were limited. The Vice Chairman of the Financial Services Commission (FSC), Kim Yong-Beom claimed for a local media that “Traders will not be allowed to make deposits in virtual accounts that have been opened in banks unless the name of their bank account matches the account name in the cryptocurrency exchange”.
Starting with 30 January 2018, Coinpia has suspended the opportunity of making deposits. The policy related to KYC was implemented by the Finance Service Commission (FSC) in South Korea.
Coinpia has temporarily ceased its activity as a crypto exchange. The company’s Executive claimed that the team will start to revise the personal system so it will be possible to meet the government’s requirements.
Do you think there will be more crypto platforms closed?