Less than a year after its launch, Binance Korea is closing its doors amid shrinking liquidity.
Binance KR has decided to shutter its operations in South Korea according to an announcement released on Thursday. As part of the press statement, Binance KR attributed the move to declining liquidity and low trading volume of its BKRW trading pairs. BKRW is a stablecoin pegged 1:1 to the Korean Won used for crypto-to-crypto settlements on the platform.
According to the details provided by Binance KR, the shutdown timeline will begin with ceasing all new account registrations on Thursday. The halting of trading services is scheduled for Jan. 10, 2021, with a hard shutdown on the platform and delisting of all BKRW pairs expected to happen on Jan. 29. Binance KR customers now have until Jan. 29 to liquidate their BKRW holdings either for the BUSD stablecoin or other supported cryptocurrencies.
As previously reported by Cointelegraph, Malta-based crypto exchange giant Binance announced the launch of its South Korean platform back in March. At the time, the news confirmed months of speculation of Binance pursuing expansion plans into the country in partnership with local fintech firm BxB.
Binance KR reporting shrinking liquidity for trading in Won-backed trading pairs is symptomatic of previous volume issues reported in the broader South Korean crypto market. Back in Aug. 2019, reports emerged that 97% of local exchanges were in danger of bankruptcy.
Stricter regulations have reportedly forced blockchain outfits to pursue token listings on overseas exchanges further exacerbating the trading volume problem in the country. In 2020, South Korean authorities finally legalized cryptocurrency trading while stipulating rigid compliance to real-name trading accounts.