According to Coindesk, the exchange stated it has been challenging to operate in Korea due to low transaction volumes, which resulted in tight liquidity for its users. The Korean affiliate of Binance had been relying on its parent for liquidity but that ability was about to banned due to a law in South Korea that goes into effect in March 2021 prohibiting order book sharing.
Binance also noted that it will close all new registrations and deposits on the local exchange starting today at 2:00 PM KST. Binance Korea users will be able to redeem funds into Korean fiat currency or other cryptocurrencies and complete withdrawals before Jan. 29, 2021, after this date withdrawals will be inaccessible.
The team said it would reassess its business approach in the country, when the operations of Binance Korea have been closed.