The Big Day Is Coming: 42 Altcoins and Many Exchanges May Perish!

 

In the past weeks, a financial regulation from South Korea has set a deadline for the relevant exchanges, with the entry into force of the law on cryptocurrencies in the country. That day has come. Exchanges that no longer comply with the money laundering and authentication rules, along with the digital asset law, will begin to close from tomorrow. Kim Hyoung-Joong, professor and head of cryptocurrency research at Korea University, says 42 altcoin projects and many exchanges may be shut down…

42 altcoins and many exchanges can be deleted

It is known that the regulation was made to prevent money laundering. So far, only the country's 4 largest exchanges, Coinone, Bithumb, Korbit and Upbit, have fully complied with the regulation. These exchanges account for more than 90% of the country's cryptocurrency trading volume. In addition, it was stated that 40 exchanges did not even register for the audit before September 24. Kim Hyoung-Joong says that small exchanges and 42 “kimchi coins” may be discontinued. The regulation may also reportedly suspend or shut down websites of non-compliant exchanges.

South Korean crypto traders are poised to lose more than Won3tn ($2.6 billion) as two-thirds of the country's crypto exchanges are poised to be wiped out by a regulatory overhaul.

Fines or imprisonment may also apply.

South Korea's financial regulator (FSC) had requested that if crypto exchanges fail to meet the new requirements before the deadline, they should inform their customers of the possible shutdown before September 17. Cho Yeon-haeng, head of the Korean Finance Consumer Federation, said that the biggest losses in suspended exchanges will be on large investors. In addition, if any cryptocurrency service provider continues to operate in the country without proper registration, the responsible parties will face up to five years in prison or a fine of up to approximately $43,500.

Particular attention should be paid to the kimchi coin

About 90 percent of South Korean crypto trading is done in altcoins, some of which are known as “kimchi coins,” a cryptocurrency largely developed by Korea. According to the estimates of Kim Hyoung-joong, Head of the Cryptocurrency Research Center at Korea University, about 42 “kimchi coins” may become obsolete as a result of non-compliance with the exchange. As for Korean investors on the other side, they may start to turn to decentralized exchanges like Uniswap and Sushiswap.