A wave of closures has hit South Korean crypto exchanges, with more firms exiting the market due to regulatory compliance and banking access issues.
Reduction of Registered Exchanges
South Korea's crypto market is shrinking, as new government data shows a drop in the number of registered virtual asset service providers since last year. A February 7 report from the Financial Intelligence Unit revealed that there are currently 31 registered crypto trading firms in South Korea, down more than 26% from 42 last year.
Challenges for Token-Only Exchanges
Delisted companies include GDAC, ProBit, Huobi Korea, and Bitrade. Most exchanges that left the Korean market were token-only platforms without fiat support, struggling to stay in business. These platforms, lacking real-name bank accounts, have been in trouble for a while. The FIU report states, 'over 90% of these exchanges were in a state of complete capital erosion last year.' Many, including Qubit and Coinbit, eventually shut down.
Future of the Korean Crypto Market
The report also warns that the number of crypto exchanges in South Korea may drop further, as some firms still on the list have already announced plans to exit, while others are focusing on overseas markets due to regulatory uncertainty.
The situation in South Korea's crypto market remains unstable, with more companies expected to consider exiting or shifting operations abroad amid regulatory uncertainty.
