U.Today is supported by its audience. When you buy through referral links, we may earn a commission.

Korea’s Watchdog Greenlights Banks’ Cooperation with Crypto Exchanges

Wed, 10/31/2018 - 12:48
Put your
crypto to
  • 1.30

    Interest per week

  • 67.5

    Interest per year

  • 3.60

    Interest rate

Join Now!
Sponsored by Celsius.Network
  • South Korea confirms banks are free to work with crypto exchanges in the regulated environment

Cover image via U.Today

The commissioner of South Korea’s regulator FSC Choi Jong-Ku has confirmed that there are no legal barriers for banks to supply home crypto exchanges with virtual accounts.

Choi pointed out that the main condition for this collaboration to keep going is that exchanges must be geared with KYC and AML systems — only following this rule will trading companies be allowed to receive services from Korea’s banking institutions.

Specifically for exchanges, South Korean banks offer a special service dubbed ‘virtual accounts.’ This enables investors and traders to make instant deposits and withdrawals of the Korean won, which ensures they can keep their funds in won on trading platforms securely.

Must Read
Three Major Problems Stablecoins Can Impose on Market - READ MORE

Crypto investors show optimism

At the start of the year, South Korean authorities urged banks to stop providing services to crypto exchanges so as to prevent them from laundering money through electronic coins.

Only one large commercial bank, Nonghyup, after working with crypto platforms for more than a year, continued to do so despite the regulator’s warning. But even this bank was made to break its cooperation with Bithumb and other large crypto traders.

Now that the head of the FSC Choi has made the government’s position on this issue clear and encourages banks to resume their collaboration with crypto exchanges, the local trading platforms seem to get a momentum for future work with no barriers from the authorities.

The newly announced position of the FSC on the matter has brought up optimism of South Korea Blockchain Association and all crypto exchanges of all scales that it represents. The legal hindrances for crypto trading in the country have now been lifted, which should stimulate the whole process. This seems good news since South Korea is one of the top major global crypto markets.

Must Read
Struggling Economies in South America Forcing LocalBitcoins Boom - READ MORE

Exchanges improving their security systems

In order to give the situation a more stable base, the Korea Blockchain Association have made local crypto exchanges start working on introducing measures of insurance in order to protect their customers’ money.

However, summer reports show that large exchanges, such as Upbit, Bithumb, and others, were approved by the government to continue their operations since these platforms had implemented the necessary measures of security and local management systems.

About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

Recommended articles
Bitcoin (BTC) Price Might Be Ready for Take-Off, Exchange Data Shows

Bitcoin (BTC) Price Might Be Ready for Take-Off, Exchange Data Shows

I Will Not Let Bitcoin (BTC) Price Go to Zero: CZ Binance

I Will Not Let Bitcoin (BTC) Price Go to Zero: CZ Binance

137.5 Mln XRP Kicked Between Exchanges as XRP Liquidity Hits New ATH

137.5 Mln XRP Kicked Between Exchanges as XRP Liquidity Hits New ATH