The post South Korean Crypto Exchanges Drop 26%: Reports appeared on BitcoinEthereumNews.com.

South Korea’s cryptocurrency exchange industry is facing a wave of exits as smaller firms shut down operations due to increasing regulatory pressure and banking restrictions. Government data now confirms that the number of registered virtual asset service providers in the country has dropped by over 26% within a year. According to a February 7 report from the Financial Intelligence Unit (FIU), only 31 crypto exchanges remain active in South Korea, down from 42 in the previous year. Many of the firms that exited the market, such as GDAC, ProBit, Huobi Korea, and Bitrade, primarily operated as token-only platforms that lacked fiat trading support, making it difficult to sustain operations. A key reason behind these closures is the failure to renew registrations, which resulted in the removal of several exchanges from the country’s official registry. Apart from these restrictions, South Korea’s martial law in early December 2024 also caused a significant Korean crypto market decline. Token-Only Exchanges in Deep Trouble Token-only exchanges have been in a vulnerable position for a while, primarily due to their lack of real-name bank accounts. Without fiat trading options like the Korean won or the U.S. dollar, user interest in these platforms remained low. The FIU report states, “Over 90% of these exchanges were in a state of complete capital erosion last year.” This led to the eventual shutdown of platforms such as Qubit and Coinbit, among others. As the market continues to contract, the FIU warns that more exchanges could soon follow. Some firms still registered in South Korea have already expressed intentions to exit the market, while others are looking toward overseas expansion to escape domestic regulatory uncertainty. South Korea’s regulatory environment has made it difficult for crypto businesses to operate smoothly. The nation’s strict anti-money laundering (AML) policies and Know Your Customer (KYC)…

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Filed under: News - @ February 9, 2025 5:20 pm