In a notice published Tuesday, the crypto exchange OKEx Korea said customers must withdraw their fiat and crypto holdings by the date. “After the end of the service, OKEx Korea will not be held liable for any losses arising from failure to withdrawal by customers,” said the exchange. The company failed to explain why the closure comes amid new regulations imposed by South Korea towards exchanges.
Korean crypto exchanges will no longer be able to share their order books with other exchanges.
In the notice published, OKEx Korea did not mention a reason for the closure, but it is likely because of a new law that is coming into effect later this week in South Korea. Per the law, Korean crypto exchanges will no longer be able to share their order books with other exchanges. This is apparently why Binance Korea shut down earlier this year, after launching in April 2020. OKEx Korea was launched in August 2019 and had meager volumes of around $3.5 million in the last 24 hours, according to CoinGecko.
OKEx Korea also faced business difficulties.
An official from the exchange also revealed that there were regulatory issues and business difficulties. “We struggled to get ISMS [Information Security Management System certificate] and virtual account [bank account required to get licensed],” said the official. “As a joint venture company with OKEx.com, it was hard to decide, but we had no other option,” the official told the crypto news outlet The Block. After Binance Korea and OKEx Korea’s moves, rival Huobi Korea could likely follow suit. Huobi notably had higher volumes of around $125 million in the last 24 hours, according to CoinGecko. Still, these volumes are tiny compared to the main exchanges Huobi and OKEx, which have recorded $7 billion and $6 billion worth of trading volumes, respectively, in the last 24 hours.