The cryptocurrency market in South Korea is subject to a significant contraction, as the number of registered encryption trading companies decreased by more than 26 % last year.
As of February 2025, 31 registered encrypted exchange in South Korea is still. This is a sharp decrease from 42 exchanges in early 2024.
On February 7, 2025, local media reports said that “the number of local virtual assets service providers (VASPS) has decreased compared to last year.”
This decrease, as explained in a recent report issued by the Financial Intelligence Unit (FIU), clarifies the challenges presented by strict regulatory requirements.
Moreover, the lack of organizational clarity was forced to exchange a smaller market.
Comparison of the encryption tax: the United States, India and South Korea
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GDAC, PROBIT, Huobi Korea, Bitrade closed
The report said: “The exchanges in the coins market have deviated from work one by one due to the difficulties of the administration since last year, but they have been officially in the list of business operators where their licenses were preserved for a certain period of time.”
The outstanding closures include GDAC, PROBIT, Huobi Korea and Bitrade.
Most of these broken companies were “symbolic” platforms lacking Fiat trading options, such as Korean Won or the US dollar. Without real-name bank accounts-a regulatory condition for the FIAT transactions-these platforms are fighting to attract users and maintain their operations.
The FIU report revealed that more than 90 % of these distinctive symbol exchanges faced “full capital erosion” last year. This led to a large -scale closure. Experiences like Qube and Coinbit are among those that are closed. This was because of the financial insolvency and the non -renewal of its records.
South Korea’s organizational framework has evolved rapidly over the past few years. While it aims to enhance investor protection and market safety, these regulations have also created large entry barriers for smaller players.
Recently, it was the largest exchange of cryptocurrency in South Korea, Upbit, under intense organizational audit. After accusing him of violating more than 700,000 customer’s knowledge of your customer (KYC) and combating money laundering (AML), Upbit faces the suspension.
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According to local media reports in South Korea dated February 3, 2025, Gwacheon has announced the use of IT solutions to infer and liquidate encryption assets from tax evaders.
Organizers aim to use this articles of association to determine the encryption portfolios belonging to tax evaders in the city. The authorities have so far set 361 high -income citizens who have not paid a tax on their encryption gains
The authorities believe that specific internet users are hiding their wealth in encryption assets to avoid paying heavy taxes. With an average amount of 18.8 billion WNA, unpaid taxes were calculated by more than 3 million WNA.
There is still an agreement reached in South Korea on encryption taxes.
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The post this week in Crypto Asia: The encryption market in South Korea appeared by 26 % on 99bitcoins.