The crypto exchange Binance KR announced on Thursday that it is shutting down its operations in South Korea.
Binance KR blamed the move on declining liquidity and the low trading volume of its BKRW trading pairs, Cointelegraph reports. BKRW is a stablecoin pegged 1:1 to the Korean won, which is used for crypto-to-crypto settlements on the platform.
According to Binance KR, the shuttering process will begin with the company putting a stop to new account registrations on Thursday. The halting of trading services is scheduled for January 10, 2021 and a hard shutdown of the platform and the delisting of all BKRW pairs will follow on January 29. Binance KR customers now have until January 29 to liquidate their BKRW holdings either for the BUSD stablecoin or other supported cryptos.
As previously reported by Cointelegraph, Malta-based crypto exchange giant Binance announced the launch of its South Korean platform back in March. At the time, the news confirmed months of speculation of Binance pursuing expansion plans into the country in partnership with local fintech firm BxB.
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. Back in August 2019, reports emerged that 97% of local exchanges were in danger of bankruptcy.
Stricter regulations have reportedly forced blockchain outfits to pursue token listings on overseas exchanges further exacerbating the trading volume problem in the country, Cointelegraph reported. In 2020, South Korean authorities finally legalized cryptocurrency trading while stipulating rigid compliance to real-name trading accounts.