The point in time for crypto exchanges and service suppliers in South Asia to satisfy necessities to remain open underneath the new regulation has passed. Twenty-nine cryptocurrency exchanges met the point in time to continue operations; however, only four of them offered commercialism in Korean won.
New South Korean Crypto Regulation in Effect
The Act on Reporting and Using Specified Financial Information needs crypto exchanges to get Information Security Management System (ISMS) certification and submit a report back to the country’s Financial Intelligence Unit (FIU) by midnight on Sept. 24. Exchanges that need to supply commercialism in Korea won should additionally type a partnership with an area bank to supply real-name accounts to users.
The Financial Services Commission (FSC), South Korea’s high financial regulator, affirmed Saturday that 29 crypto exchanges area unit ISMS-certified and submitted a report back to the FIU before the point in time. Their submissions are processed within 3 months.
Only four out of twenty nine exchanges — Upbit, Bithumb, Coinone, and Korbit — have with success partnered with banks to supply real-name accounts to their users. A bank partnership is needed for exchanges to supply traders the power to shop for and sell cryptocurrencies in exchange for Korean won. The remaining twenty five exchanges are solely allowed to be controlled as crypto-only exchanges.
The 29 crypto exchanges are currently beholden to line up a system to adopt world anti-money laundering standards known as the “travel rule,” as suggested by the Financial Action Task Force (FATF), associate intergovernmental anti-money lavation watchdog.
Bithumb, Coinone, and Korbit are developing a joint system to go with the travel rule whereas Upbit, the most important exchange in Asian nations, is functioning on its own system.
After the Fri deadline, thirty seven tiny crypto exchanges did not meet the regulative necessities and should shut their businesses. Exchanges that fail to try to do this face a fine of up to 50 million won ($42,365) or up to 5 years in jail.