CRYPTOEXCHANGES STRUGGLE AMID REGULATIONS

[Anchor Lead]

Cryptocurrency exchanges in Korea have only one month to report their activities to the financial overseer. Investors are worried that several exchanges may not pass the review and be forced to close down.

[Pkg]

​This is one of top ten cryptocurrency exchanges in the country where tens of billions of won are traded per day. Real name accounts are required for the exchange to report its investor activities, but the banks have yet to give their approval.

[Soundbite] Lim Yo-song(Pres., Korea Digital Asset Service Provider Assn.) : "We keep knocking on the bank’s door. But the bank has no plan to review our report or accept it. We are left helpless."

Some exchanges in financial trouble have already ceased their operations or notified of their closure. In fact, the largest overseas exchange has already stopped providing services in the Korean market this month. The remaining cryptocurrency exchanges are just as anxious. Bitcoin exchanges to the Korean won may become impossible, so some small and medium exchanges may not be able to liquidate their coins. Investors who cannot withdraw cash may be compelled to sell their digital coins for cash as the regulatory deadline nears. This may likely cause the so-called “coin run.”

[Soundbite] Kim Hyeong-jung(Pres., Korea Society of Fintech Blockchain) : "It’s regrettable that Korea has no data on the number of investors and projected loss."

The opposition party submitted a bill to defer the deadline for six months but the ruling party and financial authorities are against the idea. The current deadline falls on September 24th. It seems only the fittest exchange stands to survive. So far only one exchange has submitted its business report to the financial overseer.