Plenty of South Korean trading platforms cease policies that see them share order books with other exchanges in preparation for the imposition of a new crypto law that will come into force next year. in today’s crypto news, we take a closer look at their decision.
As reported, multiple South Korean trading platforms are going to stop all policies that order book sharing because of the series of amendments to a financial law that will happen in March 2021 and will transform the way that exchanges do their businesses. The terms specify:
“Cryptoasset providers may not allow customers to trade [tokens] with the customers of other cryptoasset providers through alliances.”
Order book sharing with international exchanges is actually quite the common practice for South Korean exchanges and this regulatory issue is just one of the many that had smaller exchanges contemplating their survival. Others decided to move fast ahead of the legal challenges and ended their order book sharing deals before this year ends. For example, the Aprobit exchange announced that it was ending its order book sharing policies with Bitfinex although it claimed it will continue to perform other forms of business with the company.
Huobi Korea stated that it will stop the order book sharing with its parent company Huobi Global because of the new laws. However, others that are less keen on the policy will prefer to take their time while other organizations like the Korea Blockchain Association prepares for a legal challenge to a late amendment of the new ruling. The association and its prominent members are thought to believe that the new rule will provide unfair restrictions of trade for domestic exchanges.
The spokesperson for the Korea Digital Exchange stated that the platform is preparing to stop all sharing of order books if it becomes a problem but they will wait and see the results of the association’s bid to reverse the law. FlyBit has an interesting sharing deal with binance. some exchanges claimed that the block on order book sharing makes no sense as they believe that they can comply with the good banking policies without having to end dealing with overseas exchanges and their order books, as we already mentioned above in the text.
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