Binance KR has decided to cease operations in South Korea, according to an announcement published on Thursday. As part of the press release Binance KR attributed the gesture to lower liquidity and a low trading volume of its BKRW colleagues.. BKRW is a stable coin tied 1: 1 to the Korean won and used for crypto-to-crypto settlements on the platform.
According to the information provided by Binance KR, The closure schedule begins with the completion of all new account registrations on Thursday. The interruption of trading services is planned for January 10, 2021, with a complete closure of the platform and The delisting of all BKRW pairs is expected to take place on January 29th. Binance KR customers now have until January 29th to liquidate their BKRW holdings for either the BUSD stablecoin or other supported cryptocurrencies.
As previously reported by Cointelegraph, Malta-based cryptocurrency exchange Binance announced the launch of its South Korean platform in March. At the time, the news confirmed months of speculation that Binance, in partnership with local fintech company BxB, is pursuing expansion plans in the country.
Binance KR reported that the declining trading liquidity of its Won-backed trading pairs is a symptom of previous volume issues reported in the broader South Korean cryptocurrency market. In August 2019 It was reported that 97% of local exchanges were in bankruptcy.
According to reports Stricter regulations have forced blockchain companies to keep their tokens on exchanges abroadwhich further exacerbates the problem of the volume of trade in the country. In 2020 The South Korean authorities eventually legalized trading in cryptocurrencies and stipulated strict compliance with trading accounts with real names.