Coinone Crypto Exchange Ramps Up Security Around Token Withdrawals in Compliance With South Korean Law

Coinone, a South Korean crypto exchange, has decided to discontinue withdrawals of crypto tokens to unverified external wallets. The change will be executed in January, Coinone has said in a statement. The change is also in line with a South Korean law which instructs local crypto exchanges to ensure real-name accounts of users amid other requirements. The authorities have time and again expressed concerns around the unlawful use of crypto assets which could be dangerous to the physical and economical safety of South Korean citizens.

In an official announcement, Coinone has informed users that between December 30 to January 23, they have to register their external wallets at the exchange. Following the closure of this window, token withdrawals to unregistered wallets will be halted.

Coinone has planned to verify users' names and resident registration to make sure that crypto transactions were “not used for illegal activities such as money laundering.”

The development comes six months after the Seoul implemented laws instructing crypto exchanges to register users with their real names and Information Security Management System (ISMS) authentication, where users will have to input their mobile number, followed by a one-time Pin code number.

Along with Coinone, other exchanges like Bithumb have rolled out strict kw-your-dustomer (KYC) policies to abide by the laws of the land.

More than 60 cryptocurrency exchanges in South Korea notified customers of a partial or full suspension of trading services following the announcement of these new KYC rules.

As per South Korean daily Hankyung, the cryptocurrency space is enjoying its second nationwide boom in South Korea since 2018, with over two million nationals experimenting in the arena.

In January, South Korean cryptocurency users will also be subject to a tax rule.

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