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.
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