South Korea’s cryptocurrency alternate market is present process important contraction, with the variety of registered crypto buying and selling companies dropping by over 26% prior to now yr.
As of February 2025, solely 31 registered crypto exchanges stay operational in South Korea. This can be a sharp fall from 42 exchanges in early 2024.
On 7 February 2025, the native media reviews stated that “the variety of home digital asset service suppliers (VASPs) has decreased in comparison with final yr.”
The decline, as highlighted in a current report by the Monetary Intelligence Unit (FIU), reveals the challenges posed by stringent regulatory necessities.
Moreover, lack of regulatory readability have compelled smaller exchanges out of the market.
Crypto Tax Comparability: U.S., India, and South Korea
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— Cobak (@CobakOfficial) February 5, 2025
GDAC, ProBit, Huobi Korea, Bitrade Have Shut Down
“Coin Market exchanges have been going out of enterprise one after one other resulting from administration difficulties since final yr,” the report stated, “however they formally remained on the record of enterprise operators as their licenses have been maintained for a sure time period.”
Notable closures embody GDAC, ProBit, Huobi Korea, and Bitrade.
Most of those delisted corporations have been “token-only” platforms that lacked fiat foreign money buying and selling choices, such because the Korean gained or US greenback. With out real-name financial institution accounts—a regulatory requirement for fiat transactions—these platforms struggled to draw customers and preserve their operations.
The FIU report revealed that over 90% of those token-only exchanges confronted “full capital erosion” final yr. This led to widespread closures. Exchanges like Qubit and Coinbit are amongst those who shut down. This was resulting from monetary insolvency and failure to resume their registrations.
South Korea’s regulatory framework for cryptocurrencies has been evolving quickly over the previous few years. Whereas aimed toward enhancing investor safety and market integrity, these laws have additionally created important entry limitations for smaller gamers.
Not too long ago, South Korea’s largest cryptocurrency alternate, Upbit, was underneath intense regulatory scrutiny. After being accused of violating over 700,000 Know Your Buyer (KYC) and Anti-Cash Laundering (AML) obligations, Upbit is dealing with suspension.
Discover: South Korea To Launch Platform To Seize Digital Property From Tax Evaders
South Korea’s New Platform Designed To Seize Digital Property From Tax Evaders
Based on South Korean native media reviews dated 3 February 2025, Gwacheon metropolis introduced the usage of IT options to grab and liquidate crypto property from tax evaders.
The regulators goal to make use of this platform to establish crypto wallets belonging to tax evaders within the metropolis. Authorities have thus far recognized 361 excessive earnings residents who haven’t paid tax on their crypto positive factors
Authorities assume that the recognized netizens are hiding their wealth in crypto property to keep away from paying heavy taxes. With the common quantity being 18.8 billion Gained, the non-paid taxes have been calculated to be over 3 million gained.
There’s nonetheless an settlement to be reached in South Korea concerning crypto taxes.
Discover: South Korea’s Upbit Faces Regulatory Scrutiny After KYC, AML Violations
The submit This Week In Crypto Asia: South Korea’s Crypto Alternate Market Shrinks By 26% appeared first on 99Bitcoins.
