South Korean exchange struggles to comply with KYC regs, suspends trading

Coinpia, the South Korean cryptocurrency exchange, will suspend both trading and deposits after it was unable to implement a customer identification system following a government mandate. On 30 January, Korean won deposits were suspended to comply with the new regulation by South Korea’s watchdog.

The Financial Services Commission had announced in January that cryptocurrency traders would not enjoy anonymity anymore. Coinpia, in its efforts to add identity verification, was struggling to keep up, so executives announced that trading would stop to comply with anti-money laundry and know-your-customer regulations.

This new regulation went live just a week ago, making this the first crypto exchange suspension. This is part of South Korea’s larger plans to tighten regulations around cryptocurrency trading. While in the past it had been rumoured that the government would ban trading all together following China’s example, now efforts are concentrated in applying more thorough standards.

In the past, Coinpia had received a $131,000 fine alongside seven other exchanges in South Korea by the Korea Communications Commission due to lack of the necessary user privacy protection in its system.

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