According to Eun Sung-soo, chairman of the Financial Services Commission (FSC), South Korea’s financial regulator, all cryptocurrency exchanges in the country may close in September.
Yes, you read that correctly: “everyone.” The country has recently adopted new regulations with a new license for crypto exchanges, called the Virtual Asset Service Provider (VASP). However, no one has submitted an application so far.
“There are an estimated 200 cryptocurrency exchanges in the country. But if the current situation continues, they can all be shut down. ”
Sung-soo said. Bitcoin (BTC) exchanges have been able to apply for a VASP license since March 25, but no company has yet done so.
The crypto exchanges will have until September 24 to receive a license from the FSC or they will have to suspend all trading. They will only receive a permit if they can demonstrate that their anti-money laundering systems are in order.
It has been speculated that due to the new rules, the four largest crypto exchanges may be the only ones to survive. Those are Upbit, Bithumb, Coinone, and Korbit, but even these companies are now in doubt.
The chairman also reports that it is very difficult for governments to protect crypto investors. He compares buying crypto to art and says that while the government collects tax on the purchase, it cannot check for counterfeits. According to the regulator, that responsibility lies with the consumer.
Last month, it came out that Morgan Stanley may want to invest heavily in Bithumb. Also, bitcoin recently tapped nearly $ 70,000 on Bithumb and found that trading volume on Korean exchanges was higher than on the country’s stock exchange.