Cryptocurrency exchange Binance announced Thursday it is closing its Korean operations after eight months of operating due to low usage and volume.
- The exchange said it has been challenging to operate in Korea due to low transaction volumes, which resulted in tight liquidity for its users. The Korean affiliate of Binance had been relying on its parent for liquidity but that ability was about to banned due to a law in South Korea that goes into effect in March 2021 prohibiting order book sharing.
- Binance said it will close all new registrations and deposits on the local exchange starting today at 2:00 PM KST. Binance Korea users will be able to redeem funds into Korean fiat currency or other cryptocurrencies and complete withdrawals before Jan. 29, 2021, after this date withdrawals will be inaccessible.
- Once the operations of Binance Korea have been closed, the team said it would reassess its business approach in the country.
Read more: Crypto Exchange Binance Suspends Trading Over ‘Systems Messaging Error’
Disclosure
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.