The South Korean crypto exchange Coinone has announced that it will no longer allow withdrawals of tokens to unverified external wallets from January.
In an announcement made on Wednesday, Coinone said Users would have to register their external wallets on the exchange from December 30th to January 23rd, after which withdrawals would be restricted. The exchange stated that crypto users could only register their own wallets, and the verification process “may take time” and could change in the future.
According to Coinone, it is planned to verify user names and resident registration numbers issued to all residents of South Korea to ensure that crypto transactions “are not being used for illegal activities such as money laundering”. Exchange customers are unlikely to be able to withdraw money to wallets without Know Your Customer or KYC security measures. This restriction also applies to the popular hardware wallet ledger.
In March, the South Korean government implemented a previously passed bill This requires that local crypto exchanges meet the requirements for a real name account and ISMS authentication and report on their operation within six months. Crypto users in the country will see that too Implementation of a tax regulation slated to go into effect in January – the rule would impose capital gains taxes on all profits from crypto trading in excess of approximately $ 2,300.
Related: The 30-year-old made crypto purchases on South Korean exchanges in 2021
Many exchanges, including Bithumb, have announced since then Limitations and stronger KYC and anti-money laundering (AML) controls in response to pressure from Korean lawmakers to regulate crypto. However, Coinone will likely still accept wallets offered by exchanges that already pass KYC exams, which include those from FTX and Binance.
