OKEx Korea Is Closing Its Services Amid AML Regulations

OKEx Korea is closing its services on April 7^th amid AML regulations and urged its users to withdraw their funds on the exchange so let’s read more in our latest cryptocurrency news.

Less than two years after launching,  OKex Korea is closing its services to the customers in the country but the company didn’t explain why. The closure came amid new regulations that were imposed by the government towards crypto exchanges. Earlier today, the exchange published a termination notice informing that the cryptocurrency exchange will shut down the services to all users that are based in South Korea.

The statement reads that the customers have until April 7 to close their trading positions and to also withdraw the funds in KRW or in digital assets. if they don’t do this, “OKEx Korea will not be liable for any losses arising from failure to withdraw by the customers.”  It’s worth noting that the attempted withdrawal has to be above the minimum withdrawal level and fees or it will not go through. The exchange didn’t reveal a reason behind the decision and comment still hasn’t been made yet.

However, keeping in mind that the most recent reports on regulations in South Korea, it’s safe to assume, that the new legislation will have a huge influence on the termination. The country’s financial regulator or the Financial Services Commission proposed a new initiative that will affect all crypto service providers starting on March 25^th. Upon the introduction, the new legislation plans to impose penalty standards and fines if the exchanges violate the rules or procedures. Failure to report these transaction activities is a failure to keep relevant data on these transactions will be punishable.

Before the closure, Binance Korea also shut down in December after operating in the country for just a few months. Also, as reported recently, Some Chinese companies purchased BTC and ETH ad others like Weibo stopped dealing with accounts of three of the biggest crypto exchanges Huobi, Okex, and Binance. China’s app explained the decision by outlining “abnormal practices” and breaching the security risks. It may not come as a surprise that the Chinese-based company has a hostile approach to crypto and has quite a negative crypto stance. This narrative received more confirmation today after the Global Times reported that the blogging platform Weibo blocked the accounts of multiple crypto trading exchanges.