Crypto exchange Upbit was the first to register with South Korea’s Financial Intelligence Unit before a September deadline, the FIU website posted on Friday.
- Doh Gyu-sang, vice chairman of the Financial Services Commission, expects another one or two exchanges will register before the end of August, local media reported Friday.
- Authorities have threatened to block the websites of unregistered exchanges that fail to meet the Sept. 24 deadline.
- Registration has several requirements, including setting up partnerships with banks to obtain accounts for real-name verification.
- While other exchanges are reportedly having difficulty persuading banks to work with them, Upbit, South Korea’s largest exchange, already has a partnership with online-first K-bank for real-name verification.
- Bithumb, Coinone, and Korbit also have such partnerships, so they likely will be the next ones to register.
- Foreign exchanges are also under the microscope. The FIU has called on them to register as well if they provide services to S. Korean consumers.
- Binance limited its exposure to Seoul on Aug. 13, when it stopped offering trading pairs and payment options with the South Korean won.
- Last week, Upbit’s local operator Dunamu rolled out a solution for compliance with the intergovernmental Financial Action Task Force’s “travel rule” in Singapore.
- The FIU will review Upbit’s filing within three months, local media reported.
Read more: Korean Crypto Exchanges Paid $14.7M to Banks for Name Verification Services: Report