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Key takeaways:
- Huobi Korea Shuts Down Operations Citing Business Difficulties
- Huobi Korea’s decision to close follows similar shutdowns announced by other smaller South Korean exchanges.
Huobi Korea, the South Korean cryptocurrency exchange that originated as the Korean branch of the global exchange HTX, is slated to cease its services on January 29, according to an official announcement released last Friday.
The decision comes as a response to what the company characterizes as a demanding “business environment.”
Having been established in 2017, Huobi Korea had formally severed its ties with HTX (formerly known as Huobi Global) in January 2023. The recent announcement of closure follows similar moves by other smaller South Korean exchanges, including Cashierest and Coinbit, in November.
Additionally, CoreDAX suspended its trading services due to reported financial difficulties. Like its counterparts, Huobi Korea points to challenging business conditions as the primary factor behind its decision to close its virtual asset exchange service.
Despite the closure, Huobi Korea has reassured its users that they will still have the opportunity to withdraw their funds from the platform. The company emphasizes its commitment to facilitating safe and disruption-free withdrawals for users, allowing them to withdraw holdings in both Korean Won (KRW) and virtual assets.
“In pursuit of enhancing its virtual asset exchange services, the company has implemented restrictions on certain services while concurrently undergoing a comprehensive process of brand renewal and system upgrades.
Despite these efforts, given the prevailing challenges in the current business environment, the company has taken the definitive stance that it will cease its virtual asset exchange service,” stated the announcement.
This development coincides with recent actions taken by South Korean regulators who urged consumers to report any unlicensed cryptocurrency exchanges operating in the region.
In a statement, Huobi Korea expressed gratitude to its customers and acknowledged the loyalty of those who have used its services over the years. The company expressed regret for not being able to continue providing virtual asset exchange services.
Looking ahead, Huobi Korea stated its intention to explore new blockchain business models and services, signaling a potential return to the market in the future. Currently undergoing wallet maintenance, the exchange has temporarily limited support for the withdrawal of certain cryptocurrencies.
However, Huobi Korea has announced plans to resume withdrawals in a short period, indicating ongoing efforts to ensure a smooth transition for its users during this closure.
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