OKEx Korea, a cryptocurrency exchange, announced that it would stop the operation of KRW market until the enforcement of the Specific Financial Transaction Information Act.
On the 18th, OKEx Korea posted a notice on the website, ‘Information on temporary closure of KRW market and suspension of deposits’. They said, “In accordance with the Specific Financial Transaction Information Act passed at the National Assembly plenary session, we will temporarily suspend the KRW market service in order to systematically prepare for the obligations as a cryptocurrency exchange.” “The deposit of KRW will be suspended at the same time as the posting of this notice,” they added.
OKEx Korea is the first exchange to suspend the operation of KRW market due to the response to regulations after passing of the amended Specific Financial Transaction Information Act. The government held a cabinet meeting on the 17th and voted to promulgate the Specific Financial Transaction Information Act. According to the amended Specific Financial Transaction Information Act, virtual asset service providers including exchanges, must report their business to the Korea Financial Intelligence Unit (FIU) before September next year, and must fulfill anti-money laundering obligations such as customer due diligence (CDD), suspicious transaction report (STR) and storage of related data.
It is not yet clear what specific obligations the exchanges have to follow after the law takes effect. This is because many areas of the Specific Financial Transaction Information
Act have been delegated to the enforcement ordinance. Issuance of real-name verified deposit and withdrawal account and certification of information security management system (ISMS) are required to report their business. Some analysts say that it will not be easy for small and medium-sized exchanges that do not have a virtual account to meet these requirements and continue running their business.
OKEx Korea announced that the trading on the KRW market will be suspended from 3 pm on the 6th of April on the notice. KRW deposited by the customers through the exchange can be traded until the closure of the KRW market. They requested, “Please make sure to withdraw all of your KRW assets by April 6, when KRW market is closed.”
OKEx Korea said that the operation of KRW market will be suspended, but the Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) markets will continue to operate. OKEx Korea said it has increased the maximum amount for withdrawal to minimize customer inconvenience caused by the closure of KRW market.
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