The move is a major statement from the crypto world, that all of the exchanges hit by a recent regulatory audit had failed their due diligence checks.
Upbit appears to have renegotiated its (very successful) banking contract with K-Bank, a KT-backed neobank that has seen account registration skyrocket thanks to its Upbit deal.
Under the terms of the nation’s first piece of crypto-specific legislation – which comes into force on September 24 – all exchange clients must have bank accounts verified by real names and social security numbers.
“Korean government is shocked at how so few Korean exchanges are ready for the license…Technically, none is ready, and of course, the government doesn’t want to shut them all down and create chaos, so creating several leeways.” DooWanNam, co-founder of StableNode and Asia BD at DeFi protocol MakerDAO tweeted.
The government said that offering such contracts between Banks and exchanges will mean they must absorb all associated money laundering-related risks.
The Financial Services Commission’s Vice Chairman was quoted as stating that “one or two” trading platforms appeared ready to submit their applications before the end of