Binance Korea stops operating a branch in South KoreaIllegal casino Binance and its head Changpeng Zhao announced the decision to liquidate the Korean exchange due to low volume and limited liquidity. Binance Korea launched in April 2020 to make it easier for Korean customers to access the market, but like many other markets - Binance is leaving the region, the true reasons are being glossed over.
Previously, Binance closed its branch in Uganda (Binance Uganda Limited) and crypto exchange Binance Jersey. Countries where local regulation of the crypto market (and the financial market in general) is tightening Binance instead of getting a license - just goes, pulling the residents of these countries to the main platform - Binance.com, which carefully hides in the offshore behind the company Binance Holdings Limited.
According to official information, Binance Korea has stopped registering new customers and accepting deposits since December 24, 2020. The last day to withdraw funds from the Korean exchange is January 29, 2021.
The company pointed out the disappointing performance of the Korean exchange, in particular, the low level of usage, weak trading volumes and, as a consequence, limited liquidity (and if we discard the liquidity which is created artificially - we can consider that the liquidity on the exchange was zero). The Binance Korea team is set to rethink their strategy for the local market, as the company's limited offering has failed to achieve their goals and South Korea has tightened market regulation, thereby banning Binance's operations in that format.
Explaining the situation, Jiho Kang, CEO of Binance Korea, said:
"The cryptocommunity and Binance users in Korea remain an important area for us, and we plan to reassess our strategies based on current market conditions. Our reassessment of the market will focus on striking a balance between providing reliable services, a wide range of instruments and regulatory compliance."
In addition, Binance's CEO commented on recent developments and thanked Korean customers for their support. Also, the company outlined plans to expand the mass adoption of cryptocurrency around the world through the launch of new businesses and global partnerships, the list of these plans does not include legal activities or licensed activities, Binance will continue to provide financial and banking services clandestinely and outside the law.
Changpeng Zhao (CEO of Binance) has spoken in this style:
"We want to thank the Korean community for their understanding and support. We are constantly creating new ventures and developing platforms with local partners, promoting the use of cryptocurrencies around the world. We will continue to look for opportunities to improve our services for users, including the Korean community."