Coinone Exchange Increases Strictness On Withdrawal Of Crypto Investors

South Korea’s cryptocurrency exchange Coinone has changed its rules. After the implementation of the new rules, crypto holders will no longer be able to withdraw crypto tokens from external wallets without verified. The exchange is going to discontinue the facility of withdrawal from unverified vaults. This change has been made keeping in mind the law of South Korea. By law, users must have a real name account with a local crypto exchange and other verifications must be completed. Authorities have raised concerns about the illegal use of crypto assets.

In an official announcement, Coinone told users Informed That between December 30 and January 23, they will have to register their external wallets with the exchange. After this tokens will not be able to be withdrawn from unregistered wallets.

CoinOne plans to verify user names and resident registration. Along with implementing this rule, the company wants to ensure that crypto transactions cannot be used for illegal activities like money laundering.

The move comes six months after the law for cryptocurrency exchanges came into force in South Korea. Under the law, users are required to register with the Information Security Management System (ISMS) on the exchange with their real names. For this, users will need to register their mobile number and the one time pin code that will be received after that. Apart from Coinone, other exchanges like Bithumb have also tightened the rules regarding KYC policy.

South Korea’s 60 cryptocurrency exchanges have notified customers to partially or fully suspend trading services with the announcement of KYC norms.

According to the newspaper Hankyung, this is the second biggest rally in the cryptocurrency segment since 2018 with nearly two million citizens joining the segment. Tax rules will also be implemented for cryptocurrency users in South Korea in January.