Bitcoin Forum

As the move by the south Korean government to regulate cryptocurrency against illegal use gains more compliance, a popular exchange coinone has announced its closure of withdrawal to unverified wallets starting from 30th, December 2021 to 23rd January 2022 so all customers are advised to get their account verified before that date. Wallets from KYC compliance exchanges such as Binan,ce, FTX and Bithumb are exempted from this.
https://cointelegraph.com/news/coinone-will-stop-withdrawals-to-unverified-external-wallets

Exempted.. probably for now. While exchange hacks is one reason to not leave funds unnecessarily on exchanges, people are forgetting this one reason. Regardless if these exchanges would like to do this move or not, sometimes they wouldn't have a choice when forced by the government.

If by "registering external wallets (https://cointelegraph.com/news/coinone-will-stop-withdrawals-to-unverified-external-wallets)", they meant tying/attaching certain addresses to those that are about to go through some sort of a verification process, then I don't think that's going to be a big stumbling block! Despite having said the above things, I didn't like how the following part sounded ^{[they're indirectly encouraging users to store funds in centralized exchanges]}:

• Quote from: Wiwo on December 30, 2021, 05:19:50 AM
  Wallets from KYC compliance exchanges such as Binan,ce, FTX and Bithumb are exempted from this.
  

Classifying withdraw address into centralized and decentralized will lead us to classify coins into clean and dirty one, which are not a means of trading money.
These platforms will start behaving like banks and so they may put additional conditions if you decide to withdraw or freeze your money.
This problem can be easily solved now, but its continuation will lead to the development of decentralized platforms.
I will withdraw to Binance address and then it to withdraw to any external wallet, it will not be complicated, but the withdrawal fees will increase.

I guess coinone is heading towards a centralized operation to comply with the regulation and KYC will enable the government to monitor the transaction in the user wallet to prevent money laundering.
But this move is against what decentralization stands for.

How can they verify that a withdrawal address belongs to an exchange, especially if that's a fresh address?
In the case no deposit has been to that address before, the only way to verify that is to ask the exchange if the address belongs to them.

Or they may ask the users to provide a screenshot from the deposit page of the exchange. If so, users can easily edit the images.  

Edit:
They ask the user to record a video proving that the address belongs to the exchange. [Ref. (https://support.coinone.co.kr/ko/support/solutions/articles/31000163028)]

This is a strange method and consumes a lot of resources and time.
Will these videos be manually verified and deleted?

the solution will be simple if the platforms want to cooperate with each other to make it possible.

 - When you request an address on any X central platform, that address comes with a signature and certain words.
 - When you want to withdraw from the other platform, you must enter the address and the signature that proves that that address belongs to Y platform.
 - Platforms can share a co-signature.

It just keeps getting worse ^[SMH]! They were already charging from their users' ridiculous withdrawal fees ^{[0.0015BTC or around $70 (https://withdrawalfees.com/coins/bitcoin)]} and now they've added a second layer of withdrawal fees to that ^{[e.g. for Binance is 0.00064BTC or around $30 (https://withdrawalfees.com/coins/bitcoin)]}.

It appears that they would also accept screenshots if you can show certain things, in a single screenshot ^{[refer to the "first number from this (https://support.coinone.co.kr/ko/support/solutions/articles/31000162254)" page]}.

Although I am not familiar with coinone, but it's not new for a centralized exchange. We are now well aware any centralized exchange would ask KYC at any time to enable withdrawals. That's how the centralized exchange works and here we are hopeless. We are forced to comply with the exchange. Because most reputable exchanges require KYC nowadays. We can't skip that due to various reasons.

Anyway thanks for sharing it, those who are using this exchange would take appropriate action to handle their funds.

Lots of none KYC compliance exchanges are going to close down and this will be a big blow to decentralized exchanges south Korea and the rest of China are not cryptocurrency-friendly regions first it was the climb down of miners which negatively affected the bitcoin hash rate and again the anti cryptocurrency laws.
It will not be long before the digital Yuan will become the primary cryptocurrency within that region.

Why? I can withdraw using USDT or any stablecoins or any layer2 solutions (polygon) and then I will withdraw from Binance using Bitcoin with up to 2 BTC with 0.00064BTC (https://withdrawalfees.com/coins/bitcoin), the amount can be around $30 for withdrawing with 2 Bitcoin.

You can also search for any platform that does not accept KYC if it is a problem.

The problem of fees is not great, but the problem remains in classifying the currencies to clean and dirty, and then the difference between them which is something that should not happen to money.