By Mayowa Adebajo
Published 1 second ago Updated 1 second ago

Beginning from January 2022, Korean-based crypto exchange Coinone has announced it would no longer permit withdrawals of tokens to unverified external wallets.

Coinone Issues Ultimatum For Customers To Fall In Line With New Requirements

According to the Wednesday announcement, Coinone says users must register their external wallets with the exchange from December 30 to January 23. And after the ultimatum is reached, Coinone would be stopping any such withdrawals. The exchange also noted that although the verification process may take a while, users would only be able to register their wallets.

The new announcement is an attempt by Coinone to ensure that it counters all forms of illicit activities that some crypto users might want to dabble into.

According to Coinone, it’ll look to verify users’ identity as well as their resident registration numbers, a number issued to every resident of South Korea. In short, customers must complete the Know Your Customer KYC before they can withdraw funds to their wallets.

Stronger KYC Gradually Becoming A Thing With Top Exchanges

Recall that in March, the South Korean government passed a bill into law that requires local crypto exchanges to meet some requirements. While the exchanges were required to have a real-name account and ISMS authentication, they are also required to give a full declaration of all their operations within six months.

Additionally, there’s another tax rule slated to take effect from January. Once it takes effect, this rule will classify crypto users with trading profits of $2300 and above, to be slammed with capital gains taxes.

But that’s not all. Several other exchanges like Bithumb, are also stepping up their verification process. Bithumb recently announced stronger KYC and has also put in place stricter Anti-Money Laundering (AML) checks.

Interestingly, however, Coinone is possibly going to continue accepting wallets offered by exchanges who have already complied with KYC checks, including the likes of Binance, and FTX.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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