Crypto Exchanges Need Banking Sector Support to Face ‘No Problems’: Top Financial Korean Regulator

Alexander Orlov 

Alexander Orlov

31 October 2018,
19:54
Crypto Exchanges Need Banking Sector Support to Face ‘No Problems’: Top Financial Korean Regulator

The unceasing growth in crypto trading has given rise to many illegal activities like money laundering and high profile hacking of top crypto exchanges around the world. The Chairman of Financial Services Commission South Korea has, yesterday, clarified in a statement that with the support of banking sector the crypto exchanges will never face such issues. Here, it is pertinent to mention that South Korean banks used to open virtual currency accounts that were banned by the financial regulators back in January by introducing strict anti-money laundering rules for crypto exchanges and banks.

Choi Jong-Ku has clarified that this support of banking sector would persist until the crypto exchanges devise anti-money laundering rules and apply KYC (Know your customer) checks. The Korean Blockchain Association has welcomed this statement by saying that domestic exchanges have resolved the financial regulators concerns over AML rules and KYC verifications.

It is also important to mention that Bithumb had stopped its trading services in late summers due to possible hackers attack on the crypto exchange. The crypto exchange had continued its trading after gaining support of its banking sector partner by fulfilling the requirements. The crypto exchange had vowed to keep the investors assets separate and refused to accept interests or deposits.

Korean crypto sector is already awaiting the announcement from the government to continue ICO’s or ban these forever. Here, it is worth mentioning that Korean crypto sector is facing a ban on ICO’s since September 2017.

This statement from Chairman of Korean Financial Services Commission will prove complementary in deciding the future of ICO’s in the country.