As per the latest reports, Bybit one of the largest cryptocurrency exchanges in the world has made an announcement for South Korean users. The crypto-derivatives exchange has announced it will be halting its trading services in South Korea.
According to the exchange, it is not going to operate in South Korea after the deadline for the licensing has passed in the country. This means that yet another major cryptocurrency exchange will be shutting down its doors for the South Korean cryptocurrency community.
The announcement in regards to the discontinuation of services in South Korea was made by Bybit on Friday, September 17, 2021. In the announcement, the exchange confirmed that there will no longer be any South Korean support available through their platforms or website.
Even the social media channel it currently has for its South Korean community will discontinue and would no longer have the South Korean language supported on it. The officials at Bybit have announced that the discontinuation of the services in South Korea by Bybit will be in effect from Monday, September 20, 2021.
The firm has revealed that on the other hand, the trades from Korea will be able to use the services and products that are available through Bybit. The officials have clarified that these services will no longer be available in the South Korean language.
Bybit has confirmed that it will be removing its operations involving cryptocurrencies prior to the implementation of the crypto regulations in the country. It was reported that the new crypto-regulations will be implemented in South Korea starting September 24, 2021. Therefore, the firm aims to decommission its operations in the country prior to the deadline.
It was revealed by Bybit that they had already discussed the matter with the regulatory authorities in South Korea about the acquisition of licensing. However, the South Korean regulators stated that only the local entities would be eligible for the licensing. Unfortunately, the setup they have in South Korea was not enough to earn them the right to be eligible for a license.
In the light of the above, even if they wanted to, they would not be able to acquire the license to operate in South Korea.
With the implementation of the new crypto law, all local, as well as foreign exchanges operating in South Korea, are legally bound to fulfill requirements for the Anti-Money Laundering policy. This was for any exchanges that were providing support and services to South Korean investors in the South Korean language and South Korean denominated trading pairs.
Bybit is not the only exchange that had to discontinue offering its services in South Korea. One of the major exchanges that discontinued its services in South Korea was Binance Korea that ended its operations in the country in early 2021.