{"id":42640,"date":"2025-02-07T15:49:47","date_gmt":"2025-02-07T15:49:47","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=42640"},"modified":"2025-02-07T15:49:47","modified_gmt":"2025-02-07T15:49:47","slug":"this-week-in-crypto-asia-south-koreas-crypto-exchange-market-shrinks-by-26","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=42640","title":{"rendered":"This Week In Crypto Asia: South Korea\u2019s Crypto Exchange Market Shrinks By 26%"},"content":{"rendered":"

South Korea\u2019s cryptocurrency exchange market is undergoing significant contraction, with the number of registered crypto trading firms dropping by over 26% in the past year.\u00a0<\/span><\/p>\n

As of February 2025, only 31 registered crypto exchanges remain operational in South Korea. This is a sharp fall from 42 exchanges in early 2024.\u00a0<\/span><\/p>\n

On 7 February 2025, the local media reports<\/a> said that \u201cthe number of domestic virtual asset service providers (VASPs) has decreased compared to last year.\u201d<\/p>\n

The decline, as highlighted in a recent report by the Financial Intelligence Unit (FIU), shows the challenges posed by stringent regulatory requirements. <\/span><\/p>\n

Furthermore, lack of regulatory clarity have forced smaller exchanges out of the market.<\/span><\/p>\n

Crypto Tax Comparison: U.S., India, and South Korea <\/p>\n

Trump Administration Prioritizing Bitcoin Reserves
David Sacks, head of U.S. crypto policy, confirmed that the Trump administration is prioritizing Bitcoin as a strategic reserve asset. With major regulatory shifts in\u2026 pic.twitter.com\/Tvl83tYxKD<\/a><\/p>\n

\u2014 Cobak (@CobakOfficial) February 5, 2025<\/a><\/p>\n\n

GDAC, ProBit, Huobi Korea, Bitrade Have Shut Down\u00a0<\/h2>\n

\u201cCoin Market exchanges have been going out of business one after another due to management difficulties since last year,\u201d the report said, \u201cbut they officially remained on the list of business operators as their licenses were maintained for a certain period of time.\u201d<\/span><\/p>\n

Notable closures include GDAC, ProBit, Huobi Korea, and Bitrade. <\/span><\/p>\n

Most of these delisted companies were \u201ctoken-only\u201d platforms that lacked fiat currency trading options, such as the Korean won or US dollar. Without real-name bank accounts\u2014a regulatory requirement for fiat transactions\u2014these platforms struggled to attract users and maintain their operations.<\/span><\/p>\n

The FIU report revealed that over 90% of these token-only exchanges faced \u201ccomplete capital erosion\u201d last year. This led to widespread closures. Exchanges like Qubit and Coinbit are among those that shut down. This was due to financial insolvency and failure to renew their registrations.<\/span><\/p>\n

South Korea\u2019s regulatory framework for cryptocurrencies has been evolving rapidly over the past few years. While aimed at enhancing investor protection and market integrity, these regulations have also created significant entry barriers for smaller players.<\/span><\/p>\n

Recently, South Korea\u2019s largest cryptocurrency exchange, Upbit, was under intense regulatory scrutiny. After being accused of violating over 700,000 Know Your Customer (KYC) and Anti-Money Laundering (AML) obligations, Upbit is facing suspension.<\/p>\n

Explore: South Korea To Launch Platform To Seize Digital Assets From Tax Evaders<\/a><\/strong><\/p>\n

South Korea\u2019s New Platform Designed To Seize Digital Assets From Tax Evaders<\/h2>\n

According to South Korean local\u00a0media reports<\/a>\u00a0dated 3 February 2025, Gwacheon city announced the use of IT solutions to seize and liquidate crypto assets from tax evaders.<\/p>\n

The regulators aim to use this platform to identify crypto wallets belonging to tax evaders in the city. Authorities have so far identified 361 high income citizens who have not paid tax on their crypto gains<\/p>\n

Authorities think that the identified netizens are hiding their wealth in crypto assets to avoid paying heavy taxes. With the average amount being 18.8 billion Won, the non-paid taxes have been calculated to be over 3 million won.<\/p>\n

There is still an agreement to be reached in South Korea regarding crypto taxes.<\/p>\n

Explore: South Korea\u2019s Upbit Faces Regulatory Scrutiny After KYC, AML Violations<\/a><\/strong><\/p>\n

The post This Week In Crypto Asia: South Korea\u2019s Crypto Exchange Market Shrinks By 26%<\/a> appeared first on 99Bitcoins<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

South Korea\u2019s cryptocurrency exchange market is undergoing significant contraction, with the number of registered crypto trading firms dropping by over 26% in the past year.\u00a0 As of February 2025, only 31 registered crypto exchanges remain operational in South Korea. This is a sharp fall from 42 exchanges in early 2024.\u00a0 On 7 February 2025, the […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-42640","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/42640"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=42640"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/42640\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=42640"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=42640"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=42640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}