A spokesperson for Bybit said:
"Korean traders may still use Bybit products and services. These products and services just won't be offered in the Korean language any more."
It has been reported that Bybit will remove the functions ahead of a Sept. 24 deadline for cryptocurrency businesses to submit requests for an official operating license.
Bybit representative added:
"We had conversations with Korean regulators on that. We were told that licenses would only be given to local entities, and our setup precluded that."
However, the new Anti-Money Laundering requirements are mandatory for local exchanges and foreign exchanges operating in the country that offer Korean language support or won-denominated trading pairs. This has led some major foreign exchanges to stop offering services in the country rather than fall in line with the stringent new requirements of providing real-name accounts through a local bank.
Last month, Binance halted won trading pairs and removed Korean language support from its site. Today, Bybit said that it “accepts its responsibility as an exchange and an industry leader in actively cooperating with regulations implemented by various jurisdictions to promote financial inclusion and develop the overall crypto industry.
According to a spokesperson from Bybit, the majority of the exchange's trading is coming from Europe, with European accounts making up more than 50% of trading volumes. According to the South Korean Financial Services Commission, crypto platforms that failed to request a license should notify their customers of an expected closing date and procedures to withdraw money “by at least seven days before the closure.”
Thus, according to Reuters, more than 60 crypto exchanges in South Korea must notify customers of a partial or full suspension of trading by last Friday at midnight.