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S. Korean cryptocurrency exchanges thinning trading list to keep up with gov't regulations Updated: 2021-06-16 09:54:59 KST

In an effort to keep up with the government's regulations on the cryptocurrency market, South Korean exchanges are increasingly weeding out their trading lists.
They are temporaily halting or even completely ending the trading of certain high-risk minor coins.
As of Wednesday eleven out of the twenty exchanges that have received the Information Security Management System certificate needed to be allowed to operate, either halted trading of some coins or released a list of coins that customers should be cautious of.
Leading the trend is Korea's Upbit, which has decided to delist five coins Paycoin, Maro, Observer, Solve.Care and Quiztok from the exchange from Friday noon.
Huobi Korea has ended trading of Huobi token,.. and Coinbit, has suspended trading of 8 coins and put 28 coins on its warning list.
While suspending trading of coins is quite common, industry watchers assume that the current trend comes in order to meet conditions for the government's regulatory approval.
Last month, the government officially designated the Financial Services Commission as the agency responsible for supervising and regulating the cryptocurrency market.
Now to get a business license as a legal trading platform, exchanges in Korea are required to open real-name bank accounts for customers by partnering with local banks.
The already existing exchanges have to meet such requirements by September.
But exchanges have been struggling as local banks have been reluctant to partner up due to concerns that they could be liable for any money laundering using digital currencies.
And this has led exchanges to thin their list to eliminate the most high-risk coins.
However, experts warn that this could cause confusion in the market as such actions are taken based on the exchanges' own standards, especially when the same coins can be still traded on other exchanges.
Kim Sung-min, Arirang News
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