In today's craze for digital currencies, South Korea's cryptocurrency exchanges are facing unprecedented difficulties. According to the latest data, up to 97% of South Korean cryptocurrency exchanges will face bankruptcy. This news hit like a bolt from the blue, casting a heavy shadow on the entire currency circle. What exactly caused this currency storm? This article will take you to explore this nightmare of the Korean currency circle in depth.

South Korea's cryptocurrency exchanges were once a highly watched existence worldwide, and their innovation and vitality made people full of expectations for the future of digital currencies. However, as time goes by, more and more cryptocurrency exchanges have declared bankruptcy one after another. What kind of deep-seated problems are hidden behind this phenomenon? Let us unveil the veil of this currency storm together.

First of all, the volatility of the cryptocurrency market is undoubtedly one of the important reasons for the bankruptcy of Korean exchanges. The price fluctuations of digital currencies are frequent and drastic, and the market risks are difficult to predict, which brings huge challenges to exchanges. Take Bitcoin as an example. Its price sometimes soars and sometimes plummets. This extreme price fluctuation makes it difficult for many exchanges to cope with it and falls into the dilemma of broken capital chain.

Secondly, the uncertainty of regulatory policies is also an important reason for the bankruptcy of Korean cryptocurrency exchanges. In South Korea, regulatory policies change frequently, sometimes loose and sometimes tight, which brings great operational uncertainty to cryptocurrency exchanges. Some exchanges are forced to close because they cannot adapt to changes in regulatory policies, while others are banned by the government for illegal operations, resulting in the complete inability to recover funds.

In addition, security vulnerabilities and hacker attacks are also one of the important reasons for the frequent bankruptcy of cryptocurrency exchanges in South Korea. With the booming digital currency market, hackers have become more and more crazy. They take advantage of the security vulnerabilities of the exchanges and maliciously attack the exchanges, resulting in a large amount of funds being stolen and user information being leaked. This not only damages the reputation of the exchanges, but also makes users lose confidence in the digital currency market.

In general, there are many reasons for the bankruptcy of Korean cryptocurrency exchanges. Market volatility, uncertainty in regulatory policies, security vulnerabilities and hacker attacks are intertwined, forming the root cause of this currency storm. For the Korean currency circle, this is undoubtedly a huge challenge and a profound lesson.

In the face of this nightmare challenge, Korean cryptocurrency exchanges need to seriously sum up their experience and lessons, strengthen their own risk management capabilities, increase technology investment, improve security protection levels, maintain good communication with regulatory authorities, and jointly maintain market order in order to be invincible in the fierce competition. The future of the currency circle is full of unknowns and challenges. Only by continuous learning and progress can we win the final victory.

In this era of turbulent digital currencies, we should stay alert, invest rationally, avoid blindly following the trend, and protect our property safety. The cryptocurrency market is full of temptations and traps. Only by acting cautiously can we be invincible in the face of risks. Let us look forward to the Korean currency circle being able to get out of trouble and usher in a new dawn.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

South Korean regulators have introduced strict regulations for cryptocurrency startups and traders, forcing many Korean companies to choose to list or trade cryptocurrencies on overseas exchanges. According to South Korean media "Business Korea", most Korean exchanges are at risk of implosion.

It has become an indisputable fact that more and more Korean blockchain startups are choosing to list overseas. International exchanges have introduced the won to currency-to-fiat trading accounts without real names, which has attracted Korean cryptocurrency projects to list on overseas exchanges.

Business Korea reported that Labs, an EU-based ecological fund, has added a won function to its platform to attract cryptocurrency projects from South Korea.

Two Korean blockchain projects, Medibloc and Temco, are expected to be listed on overseas exchanges.

Cryptocurrency experts told Business Korea that the development of local exchanges in South Korea is faltering, so that domestic blockchain companies are desperately trying to list on overseas exchanges.

An important reason for the deterioration of the development of local exchanges in South Korea is that hundreds of smaller exchanges cannot open real-name virtual accounts, which means that traders cannot convert digital assets into fiat or won.

South Korea’s four largest exchanges, Upbit, Bithumb, Coinone, and Korbit, all allow digital currencies to be exchanged for fiat. Still, as part of anti-money laundering regulations implemented in the first quarter of 2018, traders are required to use their real legal names on their accounts. Crypto traders told Business
Korea that one of South Korea’s fundamental characteristics is that investors cannot benefit from anonymity, so many local companies have shied away from listing on South Korean exchanges.

Crypto traders say trading volumes on domestic exchanges have fallen sharply in response to strict regulations. Only five of the world’s 100 largest exchanges by trading volume are South Korean.

“It is no exaggeration to say that 97% of South Korean exchanges are at risk of bankruptcy due to low trading volumes,” Business Korea warned.

The dominoes seem to be starting to fall.

South Korean cryptocurrency exchange Prixbit ceased operations in early August. "Internal and external negative factors have caused the company's operations to face insurmountable difficulties," said the company's founder.

Frank
Marcantoni, a software entrepreneur based in San Francisco, said that as long as South Korean regulators continue to intervene in the local cryptocurrency market with strict regulatory policies, Korean cryptocurrency companies will continue to flock to overseas exchanges. He added that, as Business
Korea said, stricter regulations will cause more exchanges to go bankrupt in 2020.