Binance KR (Korea) has decided to shut its operations in South Korea, as it attributed the move to declining liquidity and low trading volume of its BKRW trading pairs. BKRW is a stablecoin pegged 1:1 to the Korean Won used for crypto-to-crypto settlements on the platform.
It has been reported that the shutdown timeline was about to begin with ceasing all new account registrations on Thursday. The halting of trading services is scheduled for January 10, 2021, with a hard shutdown on the platform and the delisting of all BKRW pairs expected to happen on January 29.
However, Binance KR customers now have until January 29 to liquidate their BKRW holdings either for the BUSD stablecoin or other supported cryptocurrencies.
South Korea may be trying to attract blockchain companies, but low volume has forced @BinanceKorea to shut down its operations in the country. Users should take necessary action before the exchange closes its doors on January 29th. https://t.co/WL98NZJcFB — Cointelegraph (@Cointelegraph) December 24, 2020
The report said that in March, Binance announced the launch of its South Korean platform. At the time, the news confirmed months of speculation of Binance pursuing expansion plans into the country in partnership with local fintech firm BxB.
Likewise, 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.
Thus, in 2020, South Korean authorities finally legalized cryptocurrency trading while stipulating rigid compliance to real-name trading accounts.