OKEx cryptocurrency exchange has said it will terminate its South Korea-based business, following the introduction of an updated Anti-Money-laundering (AML) in the country.
The exchange’s spokesperson said OKEX chose to resign rather than try to fight the tough regulatory regime which would make it impossible to continue operating in South Korea.
“OKEx Korea service has ended on April 7th. We would like to thank all of our customers who have used OKEX Korea in the meantime.”
According to the spokesman, the new AML law which comes into effect on March 25 will make it hard for crypto-businesses to navigate the local cryptocurrency market.
“In addition to several other factors, actual profits from our Korean operation don’t add up to much, so we decided to cut our losses.”
OKEx has notified its South Korean clients that they should have withdrawn their crypto and fiat funds by latest April 7.
“Please be sure to withdraw the KRW and cryptocurrency by 7 (wed), the service end date.”
South Korea’s Regulatory Atmosphere is Becoming Crypto-Hostile
South Korea’s financial markets regulator (FSC) enforces the Financial Action Task Force (FATF) guidelines or standards on virtual assets and Virtual Assets Services Providers (VASPs).
The FSC announced in January 2021 its plan to revise its AML law, titled, ‘Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information‘ which would see crypto exchanges regulated under the country’s Special Act.
The new amendment requires crypto businesses to register with the Financial Intelligence Unit (KoFIU), giving …
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