The damage to payment companies due to Chivo can reach $1 billion in El Salvador, and most South Korean crypto exchanges will cease operations

Most South Korean crypto exchanges will cease operations

Most cryptocurrency platforms in South Korea will stop operating. We are talking about 40 out of about 60 exchanges. The reason behind it is non-compliance with FSC rules.

The new requirements include compliance with the KYC mechanism together with partners, which are credit institutions. Banks do not seek to develop cooperation with trading platforms, which may attract additional attention of regulators.

Crypto exchanges must be registered by September 24, but by September 17, companies are required to notify users of the likely closure if they fail to go through this procedure. Media reports that only 20 companies have complied with the regulations.

The damage to payment companies due to the introduction of Chivo into the financial system of El Salvador was estimated at $1 billion

The probable damage to payment companies due to the introduction of the Chivo BTC wallet into the financial system of El Salvador could amount to $1 billion. This opinion was expressed by the former top manager of the Liquid crypto exchange Mario Gomez Losada.

According to IHS Markit, about 70% of Salvadorans receive bank transfers from abroad. About 60% of such transactions are carried out by payment systems. 38% are processed by credit companies.

Payment service fees are sometimes quite high for international transactions. For example, a $100 transfer via Western Union from a US account to El Salvador reaches $5.

“Remittances are an area where the status quo in our traditional financial system is terrible, with extraordinarily high fees levelled at populations that can ill afford them. It’s a worn-out Twitter saying, but bitcoin really does fix this,” said Matt Hougan, chief investment officer of Bitwise Asset Management.