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SEOUL – Huobi Korea, a cryptocurrency exchange, announced that it will cease operations by January 29, 2024, due to continued market difficulties. The move comes as the latest in a series of shutdowns among financially struggling South Korean crypto exchanges.
The decision to close aligns with the broader trend in South Korea’s crypto market, where a handful of major exchanges command the lion’s share of trading volume. The Financial Services Commission (FSC) highlighted on June 30, 2023 that strict banking partnership requirements, especially for fiat-crypto transactions, have significantly affected smaller exchanges like Huobi Korea. These regulations, designed to reduce money laundering risks, have made it difficult for exchanges to secure necessary real-name account transactions.
Huobi Korea had previously disconnected from its global entity HTX and follows in the footsteps of other South Korean exchanges such as Cashierest, Coinbit and CoreDAX which also shut down due to financial pressures.
Looking ahead, the South Korean government is preparing to introduce the Virtual Asset Investor Protection Act in July 2024. This law will implement stricter security measures, requiring exchanges to store the majority of assets customers in cold wallets and to ensure insurance coverage to protect user funds. These impending regulations aim to strengthen the security and stability of the cryptocurrency market in South Korea.
Despite the upcoming closure, Huobi Korea reassures its customers that they will be able to withdraw their funds after the official closure of the exchange.
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