Korea’s 29 crypto exchanges now face regulatory scrutiny after meeting deadline

Following their failure to satisfy the brand new Crypto Regulations in South Korea, 37 crypto exchanges are billed for complete closure. This was revealed by a report from The Korea Herald.

29 crypto exchanges will get licensed

You will recall that we reported about Korea’s new Act on reporting and utilizing specified monetary transaction info within the nation mandates that crypto exchanges trying to function there should receive an Information Security Management System (ISMS) certification and submit a report back to the nation’s Financial Intelligence Unit (FIU) by midnight on Sept. 24.

However following the Sept. 24 deadline, the nation’s foremost monetary regulator, Financial (*29*) Commission (FSC), introduced on Saturday that solely 29 crypto exchanges which can be ISMS-certified have submitted a report back to the FIU earlier than the deadline.

The fee additionally revealed that the applying of the 29 crypto corporations can be processed inside three months.

Only 4 exchanges can provide Korean gained buying and selling pair

Meanwhile, the act that mandated the registration additionally clearly acknowledged that exchanges that wish to provide to commerce in Korea gained should additionally kind a partnership with an area financial institution to supply real-name accounts to customers.

However, solely 4 out of the 29 exchanges that met the deadline have entered a profitable partnership with Korean banks set to supply real-name accounts to their customers. These 4 banks are Upbit, Bithumb, Coinone, and Korbit.

Since the financial institution partnership is required for exchanges to supply merchants the flexibility to purchase and promote cryptocurrencies in alternate for Korean gained, the 25 exchanges unable to get this partnership are solely allowed to function as crypto-only exchanges.

The 29 crypto exchanges are now obligated to arrange a system to undertake world anti-money laundering requirements known as the journey rule, as advisable by the Financial Action Task Force (FATF), an intergovernmental anti-money laundering watchdog.

Bithumb, Coinone, and Korbit are growing a joint system to adjust to the journey rule whereas Upbit, the most important alternate in South Korea, is working by itself system.

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Posted In: Korea, Regulation

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About the Author: Daniel