Crypto exchange Upbit has become the first operator to comply with new rules regulating digital assets in South Korea.
The company submitted registration documents with the Financial Intelligence Unit (FIU) as required by a new ruling obligating all exchanges operating without a license to register by the September deadline.
According to FIU vice chairman Doh Gyu-sang a few more exchanges should be registering before the month is out. However, after the September 24 deadline authorities will cut access to and from any unregistered exchanges.
The registration process is complicated, as it requires any exchange willing to operate in the country to strike a partnership with a local bank and receive account information for real-name verification.
In the wake of the Liquid Global exchange being hacked, financial institutions in Asia have become more reluctant to work with crypto exchanges.
However, Upbit has been able to secure a working partnership with the country’s online-first K-bank and will be able to meet the real-name verification requirement.
Other exchanges, including Bithumb, Coinone and Korbit are also looking at a smooth registration process as they also have existing partnerships with banks.
However, Binance has limited its operations in the country and stopped trading any pairs involving the national currency, the South Korean won.
Exchanges need not receive an approval from the FIU right away. As long as they have submitted their documents, they are not breaching the deadline. Upbit’s application will be reviewed within the next three months.
In the meantime, you can use cryptocurrencies to spend them on igaming casinos such as Bitcasino.io, 1xBit and FortuneJack.