Under the new rules, South Korean crypto exchanges and service providers have expired to meet open requirements. Twenty Twenty cryptocurrency exchanges have met the deadline to continue operations but only four of them can trade in Korean Won.
The new South Korean crypto regulation is effective
Laws relating to the reporting and use of specific financial transaction information require the Crypto Exchange to obtain the Information Security Management System (ISMS) certification and submit the report to the country’s Financial Intelligence Unit (FIU) by midnight on September 24. Korea Wins must form a partnership with local banks so that users can be given real name accounts.
The Financial Services Commission (FSC), South Korea’s top financial regulator, said Saturday that 229 crypto exchanges have submitted ISMS-certified and a report to the FIU ahead of schedule. Their submissions will be processed within three months.
Of the 229 exchanges, only four have successfully partnered with Upbit, Bithamb, Coenone and Corbit-Banks to offer their users real-name accounts. A bank partnership is required for the exchange to enable traders to buy and sell cryptocurrencies in exchange for Korean Won. The remaining 25 exchanges are only allowed to operate as crypto-exchanges.
The cryptocurrency exchanges are now forced to set up a system to adopt the global money laundering standard as a “travel rule”, as recommended by the Financial Action Task Force (FATF), an intergovernmental anti-money laundering watchdog.
Bithumb, Coinone, and Korbit are building a joint system to comply with travel rules, while Upbit, South Korea’s largest exchange, is operating on its own system.
After Friday’s deadline, 37 small crypto exchange regulators failed to meet the requirements and had to close their business. Exchanges that fail to do so face a fine of 50 million won ($ 2,365) or up to five years in prison.
2 Korea Crypto Exchange What do you think about meeting the regulatory requirements in South Korea but only four Koreans are able to win and trade? Let us know in the comments section below.
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