Binance Korea will cease operations in January
Officially, the exchange Binance is shutting down due to low liquidity and transaction volumes. The information was published on the platform website
The real reason for the closure
The Korea branch was launched in April and lasted for eight months. In its work, it used the functionality of Binance for cross-trading between users of different branches.
However, now, due to the imminent introduction of the new law on cryptocurrencies, exchangers in South Korea must operate separately and will not be able to share information with other exchanges.
In its statement, Binance Korea did not explicitly cite a reason for the closure. Yes, it is not necessary. This issue is completely clear
Binance Korea step-by-step plan to close
- Deposits will cease to be accepted as early as Thursday.
- Trading on the exchange stops on January 8, 2021.
- Withdrawals will not be possible from January 29, 2021.
The Binance Korea mobile app on Android will also stop working in January.
Consequences of Binance Korea Closure
The closure of the exchange is a blow not only to Korean traders, but also to the exchange itself. It actively traded a stablecoin - digital won (BKRW), as well as BTC, ETH and BNB.
In addition, the FinTech company BxB was specially acquired to launch the exchange in April. Binance Korea CEO Jiho Kang said they will have to completely rethink their strategy.
Binance CEO Changpeng Zhao commented on the statement, noting that the cryptocurrency exchange team will look for opportunities to provide services to users in the new market realities.
About cryptocurrency regulation in South Korea
The new law comes into force on 03/25/2021, but it is quite possible that its introduction will be accelerated. It states that clients of crypto exchanges cannot trade digital assets with clients of other exchanges through established inter-exchange channels.
Binance's competitors, crypto exchanges Huobi and OKEx, also have South Korean branches. It is not yet known whether they will follow Binance's lead or continue to operate in South Korea.