Binance KR has decided to discontinue its operations in South Korea, according to a Announcement released on Thursday. As part of the press release, Binance KR attributed the move to the 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.
According to the details provided by Binance KR, the closing timeline will begin with the discontinuation of all new account registrations on Thursday. The trading services shutdown is scheduled for January 10, 2021, with a hard shutdown of the platform and the deletion of all BKRW pairs expected on January 29. Binance KR customers now have until January 29 to liquidate their BKRW holdings. for the BUSD stablecoin or other supported cryptocurrencies.
As previously reported by Cointelegraph, the Malta-based crypto exchange giant Binance announced the launch of its South Korean platform back in March. At the time, the news confirmed months of speculation that Binance was pursuing expansion plans in the country in collaboration with the local fintech company BxB.
Binance KR reporting diminishing liquidity for trading won trading pairs is symptomatic of previous volume issues reported in the broader South Korean crypto market. Reports emerged there in August 2019 97% of the local stock exchanges were in danger of going bankrupt.
Stricter regulations have reportedly forced blockchain outfits to pursue token listings on foreign exchanges, further exacerbating the trade volume problem in the country. Finally in 2020 the South Korean authorities legalized cryptocurrency trading while strict adherence to real name trading accounts is prescribed.