Firstly Binance and now Bitfront, an American crypto trading platform, decide to end crypto services for the customers in South Korea. Bitfront South Korea has revealed that because there are strict rules employed by the South Korean regulator, therefore, the firm’s local offices in South Korea would not be able to continue to serve local customers. The regulation will be implemented in the coming month and before its implementation, two major crypto trade platforms in South Korea have pulled off.
Bitfront is one of the most active crypto trading platforms from the US having branch offices in South Korea as well. However, the firm has informed that it is pulling it off from the South Korean crypto market because of upcoming crypto regulations.
A few months ago, a law relating to cryptocurrencies and their trade venues, was brought into the picture in South Korea. Even though the law was heavily criticized by the crypto industry, yet it was passed by the South Korean Government. Though the law was passed, a cushion period was offered to crypto investors and crypto trading firms. It was told that the law would become applicable in the month of September 2021. However, the time of implementing the law is nearing and resultantly various foreign crypto firms are getting out of South Korea.
The first major foreign firm that pulled out from South Korea was Binance South Korea, a branch of Binance Global. Binance was sent warning notices by the regulators in which Binance was asked to ensure compliance. However, the firm denied to accept the new law and went on to suspend its crypto trading services for its South Korean customers. Binance’s denial to serve South Koreans came some two weeks ago. The firm had also notified its local customers to complete their locked trading to avoid unnecessary complications.
Now this time, the suspension of crypto trading services for South Koreans has come from an American firm, Bitfront. Bitfront has played a vital role in the growth and development of the South Korean crypto market. It was one of the few foreign crypto trading platforms that came into South Korea initially and started rendering crypto services. Bitfront has officially announced that before the start of September, none of the South Koreans would be able to utilize Bitfront’s services. The firm told that the upcoming regulations are too tight and do not align with Bitfront’s business model. In these circumstances, the firm is certain that it would fail in complying with the requirements. Therefore, it has to end its business in South Korea.
The services such as credit card facilities, language support, etc. will be completely suspended by mid of September 2021.
Likewise, other foreign crypto exchanges working in South Korea are too considering replicating such initiatives.