When it comes to the global economy, the year 2020, has turned out to be the worst year of the 21st century so far. Unfortunately for South Korea, the country is currently at the forefront of the economic downfall. In the current year, the country’s GDP has taken a dip and will continue to face the same in the next year.
As a result of the drop in the economy, the South Koreans are finding it difficult to invest in the cryptocurrency industry. Therefore, the cryptocurrency exchanges currently operating in the country are facing a lot of difficulties when it comes to a decent volume of users.
The low user-base and adoption are not being faced by the small or mediocre crypto-exchanges, but even the largest crypto-exchange is also affected by it.
When it comes to cryptocurrency exchanges, Binance is the largest cryptocurrency exchange as per market capitalization. The exchange had recently opened its subsidiary in South Korea and it titled the subsidiary ‘Binance KR’.
However, Binance KR just made an announcement on December 24, 2020, that it will be shutting down its services in the South Korean region. In the announcement, Binance KR has stated the main reasons why it had to take the step to shut down its operations.
The exchange has confirmed that in the running year, it has not been able to garner as much user-base, liquidity, and trading volumes as it had expected.
Binance KR exchange confirmed that the main factors were low trading volumes and declining liquidity that resulted in the exchange being shut down.
The exchange announced that in the initial phase of shutting down its operations, the exchange will cease the option of creating accounts through the platform. Effective from December 24, 2020, no new user will be able to sign up or register with Binance KR.
In the second phase, Binance KR will be ceasing the trading activities through its trading platform. The trading service will be revoked/stopped from January 21, 2021. After the second phase, the third phase will be the hard shutdown that would involve the shutting down of the platform. Furthermore, all the trading pairs on the BKRW platform will be delisted, which is expected to take place on January 29, 2020.
Following the plan of the Binance KR shutdown, the exchange has announced that the final date of the exchange’s operations would be January 29, 2020. Therefore, all the users on the Binance KR platform need to ensure they liquidate their BKRW holdings. They can either liquidate their BKRW holdings into BUSD stablecoin or they can go for any other cryptocurrencies that are supported by the platform.
Binance had launched its South Korea-based cryptocurrency exchange named ‘Binance KR’ back in March of 2020.