OKEx South Korea users have been warned to withdraw their funds stored on the exchange before April 7th, as the platform is closing its services in the region.
In less than two years after launching, OKEx South Korea has decided to shut down its services to South Korea-based customers. Although the company is yet to give reasons for the closure, the announcement comes amid new regulations imposed by South Korea towards exchanges.
In the early hours of today, OKEx Korea published a termination notice informing users that the cryptocurrency exchange will shut down its services based in South Korea. The statement explains that customers have until April 7th to close all their opened trading positions and withdraw their funds either in KRW or digital assets. But, if they fail to do so, “OKEx Korea will not be held liable for any losses arising from failure to withdraw by the customers.”
Note also that any attempted withdrawal has to be above the minimum withdrawal amount and fee, otherwise, it won’t go through.
OKEx South Korea did not provide a reason for its decision
While crypto enthusiasts are ignorant of the reasons behind the closure, CryptoPotato reached out to OKEx for comments, and a company representative said that OKEx is a separate entity from OKEx South Korea. However, with the most recent reports on crypto regulations in South Korea, it is safe to assume that the new legislation could have influenced the exchange’s operations, hence, the closure.
As reported earlier this month, the country’s financial regulator—the Financial Services Commission (FSC)—proposed a new initiative that will affect all virtual asset services providers (VASPs) starting on March 25th. And upon its introduction, the new legislation puts hefty penalties and possible fines if the exchanges violate any of the following three rules:
- Failure to report suspicious transaction activities.
- Failure to keep relevant data on such transactions.
- Failure to have separate management of customers’ transaction records.
Before the closure, Binance Korea shut down its services in late December after being operational for a few months.