A cryptocurrency race could be brewing in South Korea

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Source: Adobe Stock / Nuthawut

Leading South Korean media and industry experts have warned that a coin race could take place next month as the likelihood of a mass of crypto exchange closings increases.

In a video report, national broadcaster KBS signaled that a glut of crypto liquidations could be on the agenda in the coming weeks as many exchanges shut down.

South Korea’s market-leading crypto exchange Upbit became the first trading platform to apply for a business license this week. But under the terms of the first national crypto-specific legislation that will become legally binding as of September 24, all exchanges must have anti-money laundering protocols in place, obtain information security certificates, and be compliant. ensure that their clients all have a trading platform linked to bank accounts verified by real names and social security numbers.

While Upbit, who already has the latter in place, seems to have cleared all these hurdles, only a small handful of rivals are likely to follow suit.

And as the Financial Services Regulatory Commission (FSC) told the exchanges that if they continue to do business without a license after September 24, most will be forced to shut down unless the government grants them an eleventh reprieve. time. As it stands, banks are unwilling to partner with exchanges, with many saying crypto exchange activities are not worth the risk.

KBS reported that experts are now concerned that some small and medium-sized exchanges fear that clients are looking to withdraw all of their funds from their platforms at once, which could overwhelm their systems and KRW reserves, with a massive wave of crypto. -coins. fiduciary liquidations are also likely.

Mass sales and withdrawals are almost inevitable at this point, the outlet hinted, adding that all of this means the possibility of a so-called coin mintage is not minimal.

However, no one can predict the size of this series of coins, as no one knows how much silver and crypto is currently held on South Korea’s small exchanges.

Kim Hyung-joong, president of the Korean Society of Fintech and professor at Korea University, told the network:

It is unfortunate that there are no statistics on the number of investors and the damage that could be caused in the future.

Investors nationwide have told Cryptonews.com they face a nervous wait as the deadline approaches.

The FSC has indicated that one or two trading platforms may also submit their applications before the end of August. But the probability of reaching more of this number appears to be weaker and weaker. The FSC has rejected industry demands to extend the deadline, as political efforts to make legislative changes are also running out of time.

In the same report, Im Yo-Song, president of the Korea Digital Asset Business Association, said:

[Exchanges] knocking on the doors of banks again. However, the banks do not intend to consider our requests now and do not intend to accept them. Therefore, as it is, we have no way of meeting regulatory requirements.

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Read More: – All South Korea Crypto Exchanges Fail Regulatory Audits – A Grueling Expectation for Korean Crypto Investors S, 70% of Crypto Company Sites Down

– South Korean crypto exchanges plead for 6 months of regulatory mercy – Korean regulator S to force overseas crypto exchanges to comply with its rules

– Small South Korean crypto exchanges begin to shut down and suspend services – Signs of declining crypto regulation by South Korea’s ruling party

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