Cryptocurrency Exchanges In South Korea Announces Self- Regulation Measures

by | Dec 20, 2017 | Cryptocurrency, Cryptocurrency News | 0 comments

South Korea had always been a big market crypto trading. However, it also understood the necessity of bringing upon proper regulations to keep investors safe from the malice which have been linked with the usage of cryptocurrencies time and again. This propelled the government of South Korea to come ahead with a regulatory rulebook which all crypto market participants need to abide by for hassle-free and secured functioning. And just within one day of the release of the crypto regulations more than 40 South Korean companies have lined up for getting to know more about the self-regulation policies and applying the same. These regulatory measures shall also have to be implemented by 14 major South Korean exchanges such as Bithumb,Coinone,and Korbit.

The announcement made by the Korean Blockchain Industry Association through a press conference held in Seoul and reported to general public via Korea Times revealed that these self-regulatory measures shall aid with the transparency of crypto listed products and enhance protection of investor’s assets. More than 40 companies have enrolled with the same along with 14 bitcoin exchanges. One of the biggest issues which have been plaguing the South Korean government off late is the fact that crypto exchanges are slowly going out of business.

For applying an effective regulation, the virtual accounts which are associated with the digital currency have to be identified. Although banks such as KB Kookmin Bank, Nonghyup Bank, KEB Hana Bank, IBK Bank, Kwangu Bank and Shinhan Bank have driven the development and identification process of an associated system they have announced that services in regards to crypto exchanges won’t be provided by them any further. This can increase the chances of exchanges being forced out of the banking radar of South Korea. Thus, it has become imperative for the banks and government body to curb these exchanges as early as possible. For executing deposits of withdraws, it will be highly essential to process a face-to-face identity verification drill. Each user will be granted just one registered crypto-trading account.

Also Read: Banks In South Korea Banned For Dealing in Cryptocurrencies Such As Bitcoin

As per information provided by News33 which is one such crypto exchange which will be applied on 1st January of the coming fiscal, “the requirement to operate a virtual currency exchange is limited to a place with more than 2 billion won [~USD$1.83 million] of equity capital. It should be a place that can implement information security system, internal process, and information security manpower similar to a financial provider.” 

Also Read: South Korean Central Bank Chief Says, “Bitcoin Is A Commodity And Not A Currency

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