Crypto Exchange Binance Terminates South Korea Operations Due to Low Usage
Cryptocurrency exchange Binance said a new South Korean law going into effect early next year was another factor.
Cryptocurrency exchange Binance announced Thursday it is closing its South Korea operations after eight months due to low usage and volume.
- The exchange said it has been challenging to operate in South Korea due to low transaction volumes, which resulted in tight liquidity for its users. The Korean affiliate of Binance had been relying on its parent for liquidity but that ability was about to be banned under a law in the country, in effect March 2021, prohibiting order book sharing.
- Binance said it will close all new registrations and deposits on the local exchange starting today at 2:00 p.m. local time. Binance Korea users will be able to redeem funds in Korean fiat currency or other cryptocurrencies and complete withdrawals before Jan. 29, 2021; after this date, withdrawals will be inaccessible.
- Once the operations of Binance Korea have been closed, the team said it would reassess its business approach in the country.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.