South Korean crypto exchanges team up for ‘travel rule’ policy 

Bithumb, Upbit, Coinone, and Korbit, that are a number of the largest crypto change corporations in South Korea, have just lately introduced the signing of their Memorandum of Agreement concerning the nation’s “journey rule” coverage. 

The journey rule is a requirement of the South Korean authorities to crypto change corporations to reveal the details about the sender and receiver of cryptocurrencies they’re managing. 

According to the 4 corporations, it’s their accountability to be in step with the federal government’s regulation to scale back the danger of cryptocurrency frauds and make transactions protected and clear. 

As quickly as doable

The corporations additionally stated that they are going to adjust to the federal government’s necessities as quickly as doable, not solely for the sake of complying however to raised shield the safety of their shoppers. 

Through the revised Specific Financial Information Act, the ”travel rule” was added to offer a further layer of safety on cryptocurrency transactions. 

The deadline for crypto change corporations to adjust to the foundations was prolonged till March 25, 2022, to offer the businesses extra time to ascertain an trade information-sharing system. 

Opposite instructions

With the implementation of the brand new requirement, it was clear that not all corporations are proud of it. In reality, different crypto change corporations are planning to file costs towards the South Korean authorities for the extra necessities made within the Specific Financial Information Act. 

Also, a number of the greatest banks in South Korea akin to NH banks and Shinhan Bank are very cautious in coping with crypto change corporations which embody Upbit, Bithumb, Coinone, and Korbit. 

The banks’ lack of initiatives to achieve out to crypto exchanges is a transparent indication that they aren’t but able to work with them. 

 

Image courtesy of Cointelegraph News/YouTube

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