Upbit, a cryptocurrency exchange, was the first to register with South Korea’s Financial Intelligence Unit before a September deadline, according to the FIU website, which was updated on Friday.
According to local media, Doh Gyu-sang, vice chairman of the Financial Services Commission, another one or two exchanges are expected to register before the end of August.
Authorities have threatened to block the websites of unregistered exchanges that do not comply with the September 24 deadline.
There are several requirements for registration, including establishing partnerships with banks to obtain accounts for real-name verification.
While other exchanges are reportedly having difficulty convincing banks to work with them, Upbit, South Korea’s largest exchange, already has a real-name verification partnership with online-first K-bank.
Bithumb, Coinone, and Korbit all have such partnerships, so they will most likely be the first to register.
Foreign exchange rates are also being scrutinized. If they provide services to South Korean consumers, the FIU has asked them to register as well.
Binance reduced its exposure to Seoul on August 13 by ceasing to offer trading pairs and payment options in South Korean won.
Last week, Upbit’s local operator Dunamu launched a solution in Singapore to comply with the intergovernmental Financial Action Task Force’s “travel rule.”
According to local media, the FIU will review Upbit’s filing within three months.