In the spotlight of U.S. regulations, news and important updates from other markets aren’t getting attention. As per a recent report from the authorities of South Korea notes that the total number of newly registered cryptocurrency exchanges has fallen since 2024.
The Financial Intelligence Unit (FIU) published a report on February 08 that noted that the total number of crypto exchanges has reached 31 from 42 recorded the year earlier, a sharp 26 percent decline reflecting the fomo of regulators and tightening rules and regulations for crypto in the region.
The list of delisted exchanges in South Korea includes Bitrade, ProBit, GDAC, and Huobi with a few others. Most importantly the report quotes that the majority of the ones who left the market were not able to support fiat and also were identified as token-only platforms.
It is worth noting that some of the exchanges failed to get relisted due to a failure in the registration process leading to de-registration from the records of South Korea. Also noted that a few exchanges have wrapped up their operations, either due to lack of funds, or real name bank accounts including others.
Multinational companies exploring opportunities in South Korea
Since the beginning of this year till press time several known companies have shown their interest in the South Korean crypto market, on February 05 Alchemy Pay announced that it has gathered approval on its appliances of Electronic Financial Business registration in the region.
The South Korean government has also restricted access to the recently launched AI of China on the government devices terming that it might pose severe security risks.
Why is South Korea lagging in crypto adoption?
In the past few quarters, a steadiness in cryptocurrency adoption has been seen in the South Korean territories, yet there are several reasons that are argued to be the driver of slower adoption.
As per several reports, the popularity of cryptocurrencies in wholesome has grown to new heights, but following the launch of spot ETFs especially Bitcoin and Ethereum ETFs has gathered huge traction opening a path for easy exposure to cryptocurrencies with less investment.
In a recent media address, the Chief of the Finance industry of South Korea said that the older generation of the nation is eager to explore opportunities in Bitcoin and Ethereum ETFs rather than directly investing in cryptocurrencies.
Most recently North Jeolla Province’s emergency services, the overheated crypto mining equipment in South Korea has caused yet another significant fire. The incident happened in the city of Muju, damage from the incident was $17,345.
The investigating officers noted that the fire started on January 30 at approximately 4:28 a.m. They further stated that a house in Muju County was the scene of the crime.
