Cryptocurrency Exchanges Will Be Regulated By Korea Like Banks
The (KFIU) and other regional monetary organizations have declared that they will Korea Financial Intelligence Unit regulate cryptocurrency exchanges like banks.
Kim Geun-ik, KFIU director, offered more stringent strategies for both commercial banks and independent financial service providers.
Originally, the KFIU designed to introduce new policies on wide scale monetary institutions, merchandise investors, and traders in the public fund market and other sectors that at the moment have mild AML and Know Your Customer (KYC) regulations. However, in last disputes, the KFIU has made the decision to involve the cryptocurrency industry in its AML and KYC initiative.
The Korea Financial Intelligence Unit expressed that the department will agree with the Congress to hand a bill that would permit regional financial authorities to control traditional bank account and cryptocurrency users with transparency.
Currently, cryptocurrency exchanges in South Korea may work as a communication trader, with a USD 40 license. In essence, even the Free Trade Commission which is the country’s regulatory authority for economic competition, does not have the competence to manage and control crypto exchanges.
Nevertheless, to hinder the usage of cryptocurrencies like Bitcoin and Ethereum in illegal economies and doubtful activities, the KFIU came to an agreement to accept cryptocurrency exchanges as appropriate financial institutions and manage them respectively.