More than half of the country’s cryptocurrency exchanges are expected to shutter when a deadline for obtaining a business license passes on Friday amid strengthened regulations on the industry.   

According to the Financial Services Commission(FSC) on Friday, cryptocurrency operators are required to submit a written intent to do business to the authorities by the end of the day.

Those not complying with the rule will be forced out of business and face up to five years in prison or 50 million won in fines should they continue operating without a license. 

According to the industry and watchdog, there are 63 to 66 cryptocurrency operators in the country and only around 20 of them are expected to apply for a license. 

Among those who submitted written intent, only four will be able to conduct crypto trading services in Korean won, with the rest offering transactions only in cryptocurrencies.