South Korean cryptocurrency exchange Coinpia has suspended fiat deposits as well as trading operations after the company was not able to meet the country’s new KYC requirements in time, as stated in an announcement on their site Tuesday, Feb. 6.
The new, stricter anti money laundering regulations in South Korea were first announced in late December and took effect on Jan. 30. Now all cryptocurrency exchanges in the country must ensure that all of their customers use their real names and associated bank accounts when performing crypto-fiat trades.
According to their statement, the Coinpia exchange had stopped accepting fiat deposits on Jan. 30 in order to meet the requirements of the Financial Services Commission (FSC). Coinpia’s decision to halt trading came “[i]n the absence of a clear solution”, as the company had not been able to set up the necessary systems for user verification with banks in time.
As Cointelegraph reported last week, the day after the KYC law went into effect, the Korea Customs Service (KCS) published a press release that revealed that more than $600 mln in digital currency had been traded under the new law.