South Korean Exchanges Halt Trading on Certain Cryptos as Regulatory Pressure Mounts

Upbit, Huobi and Coinbit are among the cryptocurrency exchanges outlined in the report that have halted trading on certain coins.

Jun 16, 2021 at 6:06 a.m. UTC
Updated Sep 14, 2021 at 1:11 p.m. UTC

As South Korea tightens its regulation of the cryptocurrency industry, digital asset exchanges have started to halt trading on certain coins deemed to be too risky.

According to a report by local news outlet Arirang on Wednesday, 11 out of 20 exchanges that have received South Korea's Information Security Management System certificate have either stopped trading coins or issued warnings.

Some of those crypto exchanges outlined in the report include Upbit, which has delisted Paycoin, Maro, Observer, Solve.Care and Quiztok. Huobi Korea has halted trading of the Huobi token, while Coinbit has stopped the trading of eight cryptocurrencies and put 28 coins on a warning list, according to the report.

The certificate, issued by the Korea Internet and Security Agency (KISA), is a requirement for virtual asset service providers to operate within the country. Meanwhile, South Korea’s updated Financial Transactions Reports Act requires all crypto exchanges to register with the country's regulators by Sept. 24.

The development marks yet another case in which South Korea's regulators are applying greater pressure on the domestic cryptocurrency industry. On Sunday, the Korea Times reported banks will have to deny services to clients who failed to comply with identity checks or failed to report suspicious activity.

Additionally, the country's financial regulators have begun a process to impose fines of 100 million won (US$89,519) on exchange employees caught trading on their own platforms.

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