An ultimatum to the sole FSS Coin Exchange… On the 17th, fate is different

It was confirmed that the Financial Supervisory Service issued a guideline for domestic virtual asset (cryptocurrency) exchanges to “notify whether to remove the KRW transaction by the 17th.” It is interpreted as a guideline considering the exchanges that want to accept the report even if the KRW transaction is removed in a situation where the 24th, the deadline for reporting business under the Specific Financial Information Act (Special Provisions Act) is imminent.

According to data obtained exclusively by BloomingBit on the 3rd, the Financial Supervisory Service (FSS) targeted 35 virtual asset providers (VASPs) that were about to file a report on the 19th of last month, including the four major domestic exchanges (Upbit, Bithumb, Coinone, and Korbit). “In the event that some or all of the business has to be closed due to a decision to close some business (removal of the KRW market, etc.), a decision not to report, or a notification of non-acceptance of a report, we will notify the member at least one week before the closing date.” When the ‘business end date’ in the request is interpreted as the 24th, the deadline for reporting, it means that it is necessary to notify whether to remove the KRW transaction at least 17 days in advance.

Part of the official letter sent by the Financial Supervisory Service to virtual asset exchanges on the 19th of last month (Photo=Bloomingbit reporter Lee Ji-young)

As the financial authorities had previously nailed it several times that “there is no extension of the reporting deadline in accordance with the amendment to the Special Provisions Act,” exchanges must secure real-name deposit and withdrawal accounts other than ISMS certification by the 24th and accept the report to resume business. can continue As of the 5th, as of the 5th, there is only one Upbit exchange that has met all of the conditions and has received a report.

Some exchanges believe that it is realistically difficult to secure a real-name deposit and withdrawal account with only two weeks left to report, except for the Chuseok holiday. Accordingly, it appears that the next best solution is to eliminate the KRW transaction and proceed with the report.

Hwi-gang Yang, director of the Korea Blockchain Industry Association, said, “Once the exchanges that have received ISMS certification, remove the KRW market, they can file a report. “We are devising a strategy to resume the KRW market,” he said. He pointed out, “Exchanges that have not secured real-name accounts so far have no choice but to go with this strategy.”

Large exchanges “goal to re-contract real-name accounts before reporting”

Large exchanges that have secured real-name accounts but have not decided whether to extend them are in their position not to let go of the string of renewal of contracts. A Bithumb official said, “As scheduled, we are working hard with the priority goal to receive a re-contract for the issuance of accounts before September 24.” A Coinone official also said, “We are positively negotiating the direction of the real-name account renewal.”

According to the financial industry on the 5th, NH Nonghyup Bank and Shinhan Bank are expected to announce on the 8th whether they will renew their contracts for issuing real-name deposit and withdrawal accounts with Bithumb and Coinone and Korbit, respectively.

Small and medium-sized exchanges that have not secured real-name accounts are divided. Gopax and Hanbitco expressed their will to secure real-name accounts right before the deadline for reporting. A Gopax official said, “We will be able to achieve tangible results before the reporting deadline.”

Kim Seong-ah, CEO of Hanbitco, said in a phone call with Bloomingbit, “Of course, we plan to file a report after receiving a confirmation of issuance of a real-name account.”

However, there are many small and medium-sized exchanges that want to file a report after removing the KRW transaction. A person from a small and medium-sized exchange, who requested anonymity, said, “To be honest, if you have not secured a real-name account so far, it is realistically impossible to obtain an issuance by the 24th. There is no answer,” he pleaded. He added, “We will also post a notice that we will stop trading in won soon.”

“Maintaining business without trading in won? It is not easy”

Most of the exchanges that want to continue their business in accordance with the guidelines of the Financial Supervisory Service are expected to continue their business after removing the KRW transaction. However, there are voices of concern that it is not easy to continue business in this form. How many users can you attract with just coin-to-coin transactions?

Another exchange official, Mr. B, said, “It is possible to report only the Bitcoin (BTC) market, but it is questionable how long the business can be maintained.” will do,” he said.

He added, “From an investor’s point of view, there may be concerns that the operation of an exchange that has been reported without a KRW market may be unstable,” he added.

Reporter Lee Ji-young, Bloomingbeat, jeeyoung@bloomingbit.io