Binance Korea to Cease Operations in January 2021

Binance Korea, a division of the world’s largest cryptocurrency exchange Binance is shutting down at the end of January next year

December 24, 2020 | AtoZ Markets – Binance’s South Korean arm, Binance Korea will cease operations at the end of January 2021. The exchange announces this on its official website.

Why is Binance Korea shutting down?

According to the announcement, Binance Korea is shutting down due to low trading volumeDespite the closure of the local exchange, the head of Binance, Changpeng Zhao, still intends to continue developing new platforms and collaborating with local partners, writes local blockchain correspondent Colin Wu.

In November, branches of the exchange in Jersey and Uganda were closed. Colin Wu suggested that the closure of Binance branches in different countries is due to the tightening of local regulation.

There are no seats

A month earlier, Huobi became interested in buying the Japanese exchange Bitflyer and the Korean giant Bithumb. The takeover decision is reportedly based on a reluctance to depend on the Chinese market.

“Huobi is aware of the risks associated with dependence on the Chinese market, so it is very urgent to expand into overseas markets,” Wu wrote.

Wu suggests that Huobi is seen as a serious threat from the Chinese authorities, and therefore is in a hurry to take over foreign companies.

Meanwhile, Korea has postponed the introduction of a 20% tax on income from cryptocurrencies until January 1, 2023. The Korean blockchain association has long urged the authorities to delay the introduction of taxation until the infrastructure is in place.

Despite attempts to regulate the cryptocurrency industry, the authorities are actively exploring the possibility of launching their own digital currency. In the summer of 2020, the Bank of Korea announced the formation of an advisory group. The regulator plans to launch its own central bank digital currency (CBDC ) in 2021.

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