Korea’s Leading Exchange Coinone Suppresses Cryptocurrency Wallet Withdrawals

Coinone, a Korean cryptocurrency exchange, intends to provide new external wallet registration processes that would prevent customers from withdrawing cash to unverified external wallets.

Coinone, Korea’s third-largest cryptocurrency exchange, stated Wednesday that it would introduce new external wallet registration processes for its consumers.

Coinone customers will no longer be allowed to withdraw cryptocurrency to unconfirmed external wallets from January 24, 2022. As a result of the move, Coinone customers will be unable to withdraw money to wallets that do not need know-your-customer registration, such as MetaMask or Ledger.

Prior to the transition, from Dec. 30, 2021, to Jan. 23, 2022, users may register their external wallets for withdrawal approval. “Withdrawals to unregistered wallets are prohibited after the enforcement date,” the exchange wrote in its notification. “Please apply in advance within the preliminary registration period.”

Coinone detailed the new client verification procedure on their help website, stating: “In order to guarantee that Coinone’s virtual asset transactions and services are not used for unlawful purposes such as money laundering, we verify users’ identities, resident registration numbers, and other identifying information.”

Throughout the summer, the Korean government launched a number of steps aimed at combating illicit cryptocurrency activity. In July, South Korea’s financial authority issued a warning to international cryptocurrency exchanges that provide services to Koreans, requiring them to adhere to know-your-customer regulations for any cross-border transactions or risk penalties and jail time. Shortly thereafter, the Korean government suggested amending the tax legislation to enable tax agents to take crypto assets kept in digital wallets by tax evaders.

Coinone’s new client verification procedures were most likely established to guarantee compliance with South Korea’s current and forthcoming regulatory regulations. It remains to be seen if other Korean exchanges would impose similar limitations on unconfirmed external wallets. The author held ETH and numerous other cryptocurrencies at the time of writing this piece.

Also Read: India’s SEBI Chairman Prohibits Crypto-Based Non-Public Offerings Due To A Lack Of Regulatory Clarity