Binance has restricted a number of services in South Korea that have nearly eliminated the company’s operations in the country. According to the official announcement published on Friday (13), the exchange will remove the South Korean won (KRW) as a cryptocurrency trading pair, as well as restrict the use of the local currency as payment options.
The platform will also interrupt the country’s users’ access to P2P trading. Even Korean customer support will be eliminated.
“As Binance is constantly evaluating its product and service offerings to proactively comply with local regulations, we will discontinue the aforementioned services in South Korea with immediate effect,” the note says.
The company said in the publication that it does not operate any official Telegram group or any other communication channel focused on the country. In December of last year, the exchange had already closed its branch in South Korea, Binance Korea, after eight months of operation.
The broker said at the time that it left the country because of the low number of users that the platform captured in the region. The branch even launched a stablecoin backed by the South Korean won, but the asset failed to reach sufficient volume to generate liquidity.
Despite justifying the exit due to low demand, the decision also involved regulatory issues. At that time, South Korean regulators had announced a new law for the crypto market that would not allow portfolio sharing between exchanges. When the rule took effect in March of this year, OKEx also left the country.
Since then, industry oversight has continued to advance in South Korea. All foreign exchanges were given September as the deadline to regulate their activities based on new anti-money laundering laws that took effect in the region.
The Binance Escape
It’s been three consecutive weeks that Binance stops offering services in different countries. On July 30, the brokerage stopped offering derivatives in Germany, Italy and the Netherlands. A week later, on August 6th, it was time for the same services to be banned in Hong Kong.
Lately, the company is suspending services in regions where it may face problems with regulators. Brokerage founder Changpeng “CZ” Zhao warned last week that more bans could come in the future to tell that Binance is shifting its stance from “reactive compliance” to “proactive compliance”.