Gopax a South Korean crypto exchange is struggling to find a banking partnership ahead of regulatory deadlines. The exchange finally opened up about the issues by stating that it might shut down the operations if it can’t resolve the banking issues before the regulatory deadline. The company will not have any other option than to shut it down if the problem remained unsolved.
Even though Gopax is backed by Digital Currency Group, the potential closure dilemma has become intense for the crypto business organization. According to the newest regulations of the South Korean government only those crypto exchanges will be eligible for obtaining licenses offered by the government which has opened their bank accounts in the country with their original name.
The country’s domestic crypto environment has become suffocating for the local exchanges after the government has decided to shut down many domestic crypto exchanges. In response to that banks in South Korea have refused to develop any ties with small-scale or local crypto exchanges. The South Korean Banks have recently stated that Banks would only be available for the big four cryptocurrency exchanges of South Korea. The top four crypto exchanges of South Korea are Upbit, Bithumb, Korbit, and Coinone. However, the deadline for obtaining the license is Sept. 24.
In a notification to clients On Friday, the Gopax group composed that the company “is as of now haggling with a banking foundation to set up a genuine name account to submit and withdrawal payments,” as specified by the new administrative system. But the company also seems to be convinced that despite all its efforts the deadline now is too short. If the result did not come any soon then the company might have to shut it down and there is no other option left out for the Gopax.
The company will only be able to run its operations normally until Sept 24th. The company also said that it will soon inform its customers via newsletter and public announcements about the result. In case the exchange shuts down its operations, the users will be informed earlier than 24th Sep to withdraw their assets from the exchange. However, the platform has already restricted its services to non-Korean users.
The new government regulations ensure that not a single domestic exchange providing services to no Korean people. The authorities on the other are convinced that their newly proposed guidelines are the only way to stop money laundering elements from digital trading. The country’s economic transparency solely relies on these guidelines. However, previously Gopax received fundings from Shinhan, one of South Korea’s largest commercial banks. But this is not the case anymore.