⛔️ South Korea🇰🇷: barriers to local investors accessing foreign cryptocurrency exchanges are becoming increasingly restrictive

⛔️ South Korea🇰🇷: barriers to local investors accessing foreign cryptocurrency exchanges are becoming increasingly restrictive

First, 30 foreign cryptocurrency exchange applications were blocked on South Korean Google Play, and now transfers to Bybit, HTX and other cryptocurrency exchanges will be subject to verification.

⚫️ Basis: on August 11, the Cabinet approved an amendment to the Enforcement Decree of the “Act on Reporting and Using Specified Financial Transaction Information.” The changes tighten anti-money laundering standards for transactions involving foreign exchanges.

⚫️ Requirements:

⚫️  Domestic exchanges must differentiate the volume of permitted transactions according to the risk level of the counterparty.

⚫️  Transactions with foreign exchanges or personal wallets must be limited to cases in which the sender and recipient are the same person.

⚫️  If the value of a transaction involving a foreign exchange or personal wallet exceeds 10 million won (USD 7,080), the South Korean exchange must review the transaction through its own suspicious transaction monitoring system and determine the purpose of the transaction.

⚫️  For the investor, this also means having to confirm ownership of the foreign-currency account. If the required information cannot be confirmed, transfers may be delayed or rejected.

⚫️ Timeline: some provisions of the amendment — including rules concerning foreign exchanges — will enter into force six months after publication.

⚫️ What about the applications?: users who installed the Bybit and OKX applications before they were removed from Google Play may, in principle, continue using them and, in some cases, update them. In the case of Bybit, for example, this can be done by downloading the Android installation file (APK) directly from the official website.

⚫️ Outlook: if domestic services remain limited to spot trading while access to foreign exchanges becomes more difficult, it is understandable that investors may react negatively to these measures. This could subsequently lead to increased P2P activity or transactions being conducted through unofficial channels.

#news #Asia #crypto

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