Binance Korea to shut down Exchange in Next January
Binance KR has decided to shutter its operations in South Korea according to an announcement released on Thursday. As part of the press statement, Binance KR attributed the move to declining liquidity and low trading volume of its BKRW trading pairs. BKRW is a stablecoin pegged 1:1 to the Korean Won used for crypto-to-crypto settlements on the platform.
According to the details provided by Binance KR, the shutdown timeline will begin with ceasing all new account registrations on Thursday. The halting of trading services is scheduled for Jan. 10, 2021, with a hard shutdown on the platform and delisting of all BKRW pairs expected to happen on Jan. 29. Binance KR customers now have until Jan. 29 to liquidate their BKRW holdings either for the BUSD stablecoin or other supported cryptocurrencies.
Binance KR reporting shrinking liquidity for trading in Won-backed trading pairs is symptomatic of previous volume issues reported in the broader South Korean crypto market.
Stricter regulations have reportedly forced blockchain outfits to pursue token listings on overseas exchanges further exacerbating the trading volume problem in the country.
The amendment to the 'Act on Reporting and Use of Specific Financial Transaction Information, etc.', which is expected to take effect in March next year, is believed to be the reason of shutdown due to the prohibition of order book sharing. Binance KR shares the order book with its parent company, Binance Exchange.