Cryptocurrency news

StagexBit exchange leaves South Korea after Binance amid changes in legislation

StagexBit exchange leaves South Korea after Binance amid changes in legislation

Cryptocurrency exchange StagexBit has announced the upcoming closure of its division in South Korea. Customers are asked to withdraw assets in digital and traditional currencies by April 7.

Although the company does not specify the reasons for the decision, it is most likely dictated by a new law that comes into force on Thursday. One of its provisions prohibits Korean crypto exchanges from having unified order books with third-party platforms.

In December, the Binance Korea exchange closed after only eight months of operation. StagexBit was launched in Korea in August 2019. According to CoinGecko, its turnover in the last 24 hours was only $3.5 million. The Huobi exchange still continues to serve customers in the South Korean market and does not disclose its plans.

More broadly, the law aims to strengthen anti-money laundering measures in the cryptocurrency industry. According to its provisions, service providers in the field of virtual currencies must submit information about suspicious transactions to the Financial Services Commission of South Korea, as well as make sure that their business complies with legal standards and conduct customer identification. To do this, they are given six months, after which, starting in September, they will be fined for violations.

South Korea’s Financial Services Commission has called for the regulations to be changed in November 2020 to bring them in line with the recommendations of the Financial Action Task Force on Money Laundering (FATF). At the beginning of the month, the proposed control measures were approved as law by the National Assembly.