More South Korean Crypto-to-Crypto Exchanges Hopeful of Making Fiat Returns
A group of South Korean crypto exchanges could be granted permission to resume crypto-to-fiat trading after a breakthrough banking deal last week – but opinions differ on whether the 23 exchanges currently trapped in crypto-to-crypto purgatory will escape before they are overwhelmed by financial pressures.
As reported, last week Gopax became the country’s first non-“big four” crypto exchange (after Upbit, Bithumb, Coinone, and Korbit) to strike a deal with a commercial bank – a move that should allow it to resume crypto-to-crypto trading (subject to regulatory approval).
Gopax sealed its deal with Jeonbuk Bank, a newer, regional bank.
The big four crypto exchanges have deals with larger commercial banks, and have thus been allowed to continue offering KRW pairs. The banks in these cases must provide exchange customers with real name-verified, linked bank accounts, which are monitored for possible money-laundering violations,
A large number of small and medium-sized exchanges were forced to either close their doors or obtain Information Security Management System (ISMS) certification from a government agency and remove fiat trading options following regulatory measures that became effective in September last year.
These exchanges have been left in a perilous situation, with most banks unwilling to partner with them. However, last week’s news appears to have offered new hope.
Seoul Finance reported that GDAC, Hanbitco, and Huobi Korea (three of the largest crypto-to-crypto exchanges) were considered by many observers to have “a high possibility of resuming KRW market activities. The report added that “it is known that these exchanges are preparing for the issuance of real name-verified accounts and are in the process of
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