South Korea’s cryptocurrency change market is present process important contraction, with the variety of registered crypto buying and selling companies dropping by over 26% previously yr.
As of February 2025, solely 31 registered crypto exchanges stay operational in South Korea. It is a sharp fall from 42 exchanges in early 2024.
On 7 February 2025, the native media stories 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), exhibits the challenges posed by stringent regulatory necessities.
Moreover, lack of regulatory readability have pressured smaller exchanges out of the market.
Crypto Tax Comparability: U.S., India, and South Korea
Trump Administration Prioritizing Bitcoin ReservesDavid Sacks, head of U.S. crypto coverage, confirmed that the Trump administration is prioritizing Bitcoin as a strategic reserve asset. With main regulatory shifts in… pic.twitter.com/Tvl83tYxKD
— 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 as a consequence of administration difficulties since final yr,” the report stated, “however they formally remained on the listing 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 keep 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 as a consequence of 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 geared toward enhancing investor safety and market integrity, these laws have additionally created important entry obstacles for smaller gamers.
Just lately, South Korea’s largest cryptocurrency change, 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
In line with South Korean native media stories dated 3 February 2025, Gwacheon metropolis introduced using IT options to grab and liquidate crypto property from tax evaders.
The regulators intention to make use of this platform to determine crypto wallets belonging to tax evaders within the metropolis. Authorities have thus far recognized 361 excessive revenue residents who haven’t paid tax on their crypto positive factors
Authorities suppose 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 may be 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 Trade Market Shrinks By 26% appeared first on 99Bitcoins.
