2023-08-28 17:59:00
According to Korea Federation of Banks (KFB), crypto trading platforms south korean must keep at least 3 billion won (equivalent to 2.3 million dollars) of reserves in bank accounts from the month of September 2023. This new measure comes as the country strengthens the surveillance of the various players belonging to the crypto industry due to several incidents in recent months.
New legislation to regulate the crypto sector in South Korea
The main Korean exchanges, including the famous Upbit et Bithumbare currently in the process of complying with the new requirements set out in the guidelines issued sometime in July by the Korea Federation of Banks (KFB), local media reported today. News1.
In the guidelines entitled “Virtual Asset Real-Name Account Operation Guidelines“, the South Korean banking association has asked crypto trading platforms to set aside at least 3 billion won or the equivalent of 30% of their average daily deposits in bank reserves.
This so that they can be able to assume their financial responsibility for damage caused to users if a risky event were to occur. To note that the size of these funds will be capped at 20 billion won according to the guidelines.
At the beginning of the month of June 2023, South Korean lawmakers have passed a set of laws aimed at better protecting investors in the crypto ecosystem. The new legislation, consisting of 19 bills concerning crypto-assets and the use of blockchain technologies in the country, gives the Financial Services Commission and the Bank of Korea the power of supervise both the different crypto operators but also the asset custodians.
Source : Xangle
In addition, it seems important to specify that the new draft law also allows the competent authorities to apply significant financial penalties in the event of unfair or fraudulent transactions in connection with virtual assets. In particular, the latter will require companies that issue cryptocurrencies that these disclose in detail all the characteristics of their tokens with the authorities.
South Korean authorities have recently announced that they will mobilize to support the compliance efforts of virtual asset service providers, in order to deal with the rise of illegal activities in the crypto market.
As a reminder, Jinwook Shinthe managing director of the exchange platform Bitsonicwas arrested by the police on monday august 7 following an investigation for fraudulent manipulations. The South Korean entrepreneur allegedly embezzled the equivalent of 10 billion won (i.e. $7.5 million) to its former users.
Source : The Block
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