Only ten cryptocurrency change corporations have registered with the KFIU, whereas solely 4 have moreover secured contracts with banks, which was the second requirement.
On Thursday, 23 September 2021, six Korean crypto exchanges, Five, Gdac, OK-BIT, Prabang, Flat Thai X made progress as regards to the regulatory compliance necessities set out by the Korean Financial Intelligence Unit, with an extra 18 anticipated to file paperwork by Friday, September 24. If these are accomplished, it will take the tally to twenty-eight registered exchanges. These 28 embody what’s collectively referred to as “The Big Four”, particularly Upbit, Bithumb, Coinone and Korbit, who account for over 90% of crypto asset buying and selling volumes within the nation of South Korea. The Big Four have secured contracts with banks for real-name verification of accounts, and have acquired certification from the Korean Internet And Security Agency, which means that their registrations had been eligible for submission to the KFIU.
Under-resourced exchanges more likely to be most affected
Certain safety infrastructure was required from exchanges by the Korea Internet and Security Agency (KISA) to cut back cash laundering dangers. In addition, partnerships with native banks should be secured, earlier than approval is granted by the Financial Services Commission. Banks bear the chance if funds are used for monetary crimes, so that they have been reticent to associate with exchanges that do not need the sources to implement complete anti-money laundering techniques in keeping with KISA necessities. Industry specialists have estimated that no less than fifty exchanges will shut down, or scale back service choices, resulting from them not assembly the entire necessities.