South Korea's major cryptocurrency exchanges—including Upbit, Bithumb, and Korbit—are set to prohibit transfers to unverified wallets starting March 25, 2025, following Coinone's earlier announcement. This regulatory move aims to combat money laundering risks by enforcing stricter transaction traceability.
Key Developments
- Coinone's Policy Shift: On December 29, 2024, Coinone declared it would reject deposits from unverified private wallets effective January 24, 2025.
- Industry-Wide Adoption: All 23 South Korean exchanges must implement similar measures by the March deadline, as mandated by the Financial Services Commission (FSC).
- Compliance Focus: Exchanges are required to enhance tracking of crypto deposits/withdrawals to align with anti-money laundering (AML) standards.
Why This Matters
The policy reflects South Korea's proactive stance on crypto regulation, prioritizing transparency and investor protection. Analysts like Jun Hyuk Ahn note this aligns with global AML trends, though some users may face temporary inconveniences during wallet verification processes.
FAQs
1. Which exchanges are affected by this new rule?
All licensed South Korean platforms, including Upbit, Bithumb, Korbit, and Coinone, must comply by March 25, 2025.
2. How does wallet verification work?
Users typically need to submit ID documents and proof of address. Exchanges may also require transaction history reviews for high-volume accounts.
3. Can I still trade crypto after the deadline?
Yes, but only between verified wallets. Transfers to unverified addresses will be blocked.
4. What alternatives exist for unverified users?
Consider platforms with fewer restrictions, but note these may lack regulatory protections. For secure options, explore 👉 verified exchanges.
Strategic Implications
- Investor Security: Reduced illicit activity but potential friction for decentralized finance (DeFi) adopters.
- Market Impact: Short-term volatility possible as users adjust; long-term legitimacy gains for compliant platforms.
For traders navigating these changes, 👉 expert insights can help optimize strategies under evolving regulations.
### Keywords
1. South Korean crypto regulation
2. Unverified wallet ban
3. Coinone policy
4. AML compliance
5. Upbit Bithumb Korbit
6. Wallet verification
7. March 2025 deadline
8. Money laundering prevention