The Korean Government Declares That 28 Cryptocurrency Exchanges Have Adhered to Regulatory Requirements
The deadline for cryptocurrency exchanges to comply with standards in order to continue operating under South Korea’s new cryptocurrency legislation is swiftly approaching. According to reports, officials have approved the continued operation of 28 cryptocurrency exchanges. Only four cryptocurrency exchanges, however, have met the conditions for offering Korean-won trading.
28 Cryptocurrency Exchanges Comply with Regulations
South Korea’s financial regulators have revealed a list of 28 cryptocurrency exchanges that have met regulatory standards to remain open beyond September 24 in accordance with the country’s new cryptocurrency legislation.
The modified Financial Transactions Act requires cryptocurrency exchanges to receive Information Security Management System (ISMS) accreditation by Sept. 24 and report to the Financial Intelligence Unit (FIU), a component of the Financial Services Commission (FSC). Crypto exchanges that do not comply with this requirement must cease business by September 24. According to Jeon Yo-seop, chief of FIU’s Planning and Coordination Office, given the impending deadline:
It is unlikely that there will be additional certified virtual asset trading platforms.
Gopax, Upbit, Korbit, Coinone, Bithumb, Hanbitco, Casherest, Tennten, Dove Wallet, Flybit, Gdak, Aprobit, Huobi, Coin&coin, Probit, Borabit, Coredax, and Okbit are among the 28 exchanges that have been ISMS-certified.
To enable trading in the Korean won (KRW), however, cryptocurrency exchanges must also partner with banks to offer users real-name verification deposit/withdrawal accounts.
Thus far, just four of the country’s largest cryptocurrency exchanges — Upbit, Bithumb, Coinone, and Korbit — have been able to obtain relationships with banks, which have been wary of partnering with crypto exchanges due to concerns about money laundering.
Cryptocurrency enterprises that do not have banking partners that can provide real-name verification deposit/withdrawal accounts shall cease trading in the KRW market, even if they have obtained ISMS certification. This means that 24 of the 28 exchanges will be cryptocurrency-only.
South Korean financial authorities have also issued recommendations on business closures for the bitcoin industry. Exchanges must tell users at least seven days prior to the estimated closing date of the exchange and how they can withdraw their funds. Additionally, they must provide a withdrawal window of at least 30 days following the closing date. Korean authorities are also apparently monitoring cryptocurrency exchanges that are about to close to guarantee that consumers receive their monies.
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