Binance has been one of the biggest crypto exchanges in the world for years, now. The platform constantly worked on expanding its ecosystem, either by adding new services, or by expanding its physical presence via new subsidiaries.
But, while it is rare for Binance to experience a failure, it does still happen, and the exchange found that it won’t be able to win over the Korean market.
Binance to withdraw from Korea for now
According to Binance’s recent announcement, the exchange decided to give up on its subsidiary in Korea. Binance.Korea was opened eight months ago, but it never managed to attract enough usage and volume for the company to decide to keep it.
Binance commented on the situation by saying that it has been challenging to work in Korea, since its subsidiary in the country saw very low transaction volumes.
As a result, the liquidity was too low for the users to operate. In the end, Binance.Korea had to rely on Binance’s main platform to provide liquidity. For a time, this was one possibility, but this will soon be banned, as South Korea has a new law about to come into effect in March 2021. The law will prohibit sharing order books, and so Binance.Korea will lose even its own parent company’s support.
Withdrawals will remain possible until late Janaury 2021
As a result of the situation, Binance decided to close down shop in Korea. It started with the closure of all new registrations, upcoming deposits on the exchange, and alike. This first wave came yesterday, at around 2 pm KST.
Binance also said that its Korean users will be able to redeem funds into the local fiat currency, or other cryptos. All withdrawals will remain possible until January 29th. After that date, no one will be able to withdraw money from the platform, which is why Binance advises people to get their affairs in order and withdraw from the platform.
However, this might not be the end of Binance’s efforts to conquer Korea, as the exchange plans to reassess its approach in the country, following the subsidiary’s shutdown.
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