South Korean Exchanges Halt Trading on Certain Cryptos as Regulatory Pressure Mounts

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After the quicksand of South Korean cryptocurrency regulations, digital asset exchanges have begun to stop trading certain coins that are considered too risky for investors.

According to a report by local Arirang news agency on Wednesday, 11 out of 20 exchanges that received a certificate for the security management system have either stopped trading coins or issued warnings.

The crypto exchanges described in the report include Upbit, which delisted Paycoin, Maro, Observer, Solve.Care and Quiztok. Huobi Korea has stopped trading Huobi tokens, while Coinbit has stopped trading eight cryptos and placed 28 coins on a warning list, the report said.

The certificate issued by the Korea Internet and Security Agency (KISA) is a requirement for Virtual Asset Service Providers to operate in the country. It also complies with the updated regulatory framework of South Korea’s updated Financial Transactions Reports Act, which requires all crypto exchanges to register with the country’s regulators by September 24, 2021.

The development marks another case in which South Korean regulators are putting greater pressure on the domestic cryptocurrency industry. On Sunday, the Korea Times reported that banks would have to start denying services to customers who failed to pass identity checks or who failed to report suspicious activity.

In addition, the country’s financial regulators have launched a process to fine fines of 100 million won ($ 89,519) on exchange employees caught trading on their own platforms.