As two-thirds of South Korea’s cryptocurrency exchanges brace for closure due to regulatory overhaul, investors could lose up to KRW 3 trillion ($2.6 billion).
Foreign and local exchanges in South Korea have until Sept 24 to register as legal platforms, according to South Korea’s Financial Services Commission. However, most local exchanges struggle to meet the necessary conditions. As a consequence, almost 40 of South Korea’s roughly 60 crypto operators anticipate having to shut down.
“Huge investor losses are expected with trading suspended and assets frozen at many small exchanges as customer protection will not likely be the priority of those exchanges facing an imminent closure,” said Cho Yeon-Haeng, president of Korea Finance Consumer Federation.