• Fri, 15 Nov 2019, 12:17 AM
  • All times are UTC
  • Edition:
    International
Copy link
Increase text size
Decrease text size
Link copied

97% of South Korean crypto exchanges on the verge of bankruptcy; blockchain startups now want to go overseas: Report

Tue, 20 Aug 2019, 03:49 am UTC

Nearly all cryptocurrency exchanges in South Korea are on the verge of bankruptcy, according to Business Korea.

As per the report, many local crypto exchanges are facing bankruptcy because of low transaction volumes, further noting that only five or six South Korean exchanges made it to the top 100 in the world.

It is no exaggeration to say that 97 percent of domestic exchanges are in danger of going bankrupt due to their low volume of transactions,” the report noted.

Although the report did not specify any sources, at least one exchange has already shut down its operations earlier this month, Prixbit.

As a result, South Korean crypto startups are also reportedly starting to put their chances at stake overseas. Many are allegedly listing their cryptocurrencies on overseas exchanges including the United States and Singapore.

Foreign exchanges have opened the Korean won money market to attract South Korean cryptocurrency projects,” the report stated. It also revealed that there is a steadily increasing trend of the number of South Korean firms listing their early-stage blockchain projects on overseas exchanges.

Binance Labs and BW.com are some of the leading exchanges that are making efforts to attract Korean startups. BW.com, which has already listed Ziktalk, Storichain, Payexpress, and Sigma Chain, plans to open the won market by month-end to absorb local crypto investors.

Binance Labs, on the other hand, is luring Korean startups by directly accelerating Korean blockchain projects.

There are several tough local crypto exchange market conditions that are reportedly contributing to the efforts of listing abroad, including the fact that investors cannot make or withdraw deposits in the Korean currency at Korean exchanges. Moreover, around 200 smaller exchanges cannot open real-name virtual accounts, preventing crypto holders from benefiting from investor protection.

The report follows after the Korea Financial Intelligence Unit (KoFIU) recently revealed its plan to bring crypto exchanges operating in the country directly under the regulatory system.

Last month, reports indicated that South Korean banks are also making requirements for renewing account by four crypto exchanges more difficult, as they start to adopt the new anti-money laundering laws.

Restrictions have become so tight that some smaller crypto exchanges said they might not be able to survive of what is asked from them. Having to suspend existing accounts and stopping the addition of new accounts will eat into their funds, which could ultimately lead them to shut down.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $8,711.90 (-1.09%)
  • Ethereum (ETH) $186.18 (-1.06%)
  • XRP (XRP) $0.270100 (-1.08%)
  • Bitcoin Cash (BCH) $279.83 (-2.10%)
  • Litecoin (LTC) $59.47 (-2.61%)
  • Bitcoin (BTC) $8,711.90 (-1.09%)
Nov 14, 2019 (Thursday)
12:14
Amun AG launches Tezos ETP on Swiss SIX Exchange; makes available 7 crypto ETPs on Boerse Stuttgart
11:38
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
11:37
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
10:59
Samsung SDS integrates QEDIT’s private asset transfer solution with Nexledger blockchain
10:46
Crypto Technicals: BTG/USD slips lower to test 4H 200 SMA, break below to see more downside
10:11
ASX-listed firm DigitalX launched new bitcoin fund
09:23
Telegram denies all SEC allegations concerning its gram token and sale
08:23
Crypto Technicals: XMR/USD pauses shy of 110-EMA (67.251), break above to fuel more gains
07:17
AFME calls for a common approach for regulation of crypto-assets in Europe
06:49
Crypto Technicals: XRP/USD edges higher from fresh 3-week lows at 0.2565, bias strongly bearish
06:21
Chinese bitcoin mining giant Canaan seeks to raise $100M in US IPO
05:20
Crypto Technicals: LTC/USD breaks below 21-EMA, eyes 50-DMA at 57.28
05:19
Crypto data provider Messari raises $4M from Uncork Capital, Coinbase Ventures and others
04:35
Crypto wallet startup Bitski secures $1.8M from Winklevoss Capital, Coinbase and others
04:06
Crypto Technicals: BTC/USD confined to narrow range trade, 5-DMA caps upside at 8814
Nov 13, 2019 (Wednesday)
13:19
CME sets January 13 as target date for bitcoin options launch
12:25
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
12:25
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
12:17
HSBC, SGX, Temasek explore DLT for end-to-end digitalization of fixed income securities
11:18
Crypto Technicals: LTC/USD trade rangebound, holds support at 21-EMA (60.12)
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft