One of the big four crypto exchanges in South Korea, Coinone will no longer allow withdrawals to non-verified external wallets. This directive will be set into effect on January 24, 2022.
As such, Coinone users need to register their external wallets with the exchange. If they fail to do so, they will no longer be allowed to withdraw the funds held in their exchange accounts. The exchange said that if users want to withdraw Coinone’s digital assets to another wallet, they have to register the wallet address to be able to withdraw. External wallets are mainly issued by third parties.
Coinone said that through the new policy, they want to ensure that customers are not involved in any illegal activities such as money laundering. To be able to withdraw the funds, customers need to provide their information, including full names, email addresses and mobile phone number etc. The users should be mindful that the information they provide must be the same details recorded in Coinone. Customers should give in their right information.
The stance taken by Coinone comes with Seoul taking a tough call on cryptocurrency after calls of regulation. Eun Sung-soo, the former Financial Services Commission (FSC) chairman, said in April 2021 that cryptocurrencies have no intrinsic value. He said they are not “real currencies” and advised people not to invest in digital assets. Sung-soo believes cryptocurrencies are too risky to trade because of their high volatility.
Koh Seung-beom, the present chairman of FSC, has also raised concerns about cryptocurrencies. He highlighted international regulatory trends making it challenging to recognize cryptocurrencies as legitimate assets.