On January 30 South Korean government enforced new regulations for local operating digital currency exchanges. Know-your-client approach forces exchanges to operate with real-name accounts to deposit fiat. This approach left only six major banks with ability to service cryptocurrency accounts, even then the banks as of now are just converting existing accounts and not creating new ones. Only four cryptoexchanges are operating above the law as of now – Bithump, Upbit, Coinone and Korbit. The banks refuse to issue new name accounts for cryptocurrency exchanges citing regulatory uncertainties and security concerns.
But new exchanges aren't deterred by this problem. Even without providing full range of services, namely fiat deposits, two new local exchanges plan to open up shortly.
Zeniex, the new crypto exchange, plans to start its operations on February 12. The launch date was postponed for a month because of the aforementioned regulations, and they wouldn't provide fiat deposits initially. For now investors are restricted to buying only with Bitcoin. From the beginning the exchange will operate with Bitcoin, Bitcoin Cash, Ether, Ethereum Classic, Litecoin, Quantum, EOS, Bytom, and 0x.
Another newcomer to the market is Dexko, which started accepting pre-registration to begin trading on March 15. Initially the exchange will support Bitcoin, Ether, Bitcoin Cash, Litecoin, Ripple and 5 other as of now unspecified cryptocurrencies. Pre-registration is open from February 5 to 25. Pre-registrered users will be exempt from trading fees for a month. Dexko is now going through the legal hassle of official registration to provide won-based trading but we'll have to wait for further news.
Also, two Chinese exchanges are planning to expand their operations to South Korea in the near future. Huobi and Okcoin were two of the largest Chinese crypto exchanges before Chinese government closed down all cryptocurrency trading last year. Okcoin has reportedly reached a final agreement with Korean NHN Entertainment Corp, so that Koreans will operate local server and provide support, while Okcoin themselves will be responsible for providing trading systems. They plan to trade more that 60 different cryptocurrencies against Korean won.
Huobi also plans to enter the market in the first quarter of this year, as reported by the Investor.