Korea Cryptocurrency Exchange will implement self-regulating measures

nWalkout comment: South Korean regulators last week released an emergency measure to manage the cryptocurrency market, followed by “South Korea Blockchain Association” also held a press conference, said its members will cooperate with the government’s measures to self-regulation, to participate in the move Also includes the three major bitcoin exchanges in Korea. Cryptocurrencies, combined with such official and private measures, is still relatively rare and may inspire similar institutions in other countries to make decisions about cryptocurrencies.n
nTranslation: Inan
Announced self-regulationn
The South Korea Blockchain Association announced a self-regulatory move by Cryptocurrencies Exchanges at a press conference in Seoul last Friday. Just the day before, South Korean regulators have just released an urgent measure to restrain the cryptocurrency market.n
The association said more than 40 companies will participate in its self-regulatory initiatives. There are 14 bitcoin exchanges, including the three largest cryptocurrencies in South Korea – Bithumb, Coinone and Korbit. “South Korea Times” reported on this:n
n”The South Korean Blockchain Industry Association said 14 local cryptocurrencies have agreed to implement programs that help protect investors’ assets and make the process of going public with new cryptocurrencies more transparent.”n
nSouth Korean media Sisaweek said the self-regulating document was drafted in September, on the advice of the government’s virtual currency working group. Kim Jin-hwa, a leader of the association, said: “We will conduct more secure cryptocurrencies trading through voluntary regulatory cooperation with government programs.” These self-regulatory measures will begin in January next year.n

Korea Blockchain Association announced self-regulationn
Manage customer deposits and accountsn
One of the self-regulating measures is to completely deposit traders’ deposits with financial institutions. In the meantime, 70% of its encrypted assets are cold-stored offline. Kim elaborates on the purpose of this measure to strengthen the protection of traders and reduce the possibility of hacking.n

Kim of South Korea’s Blockchain Association made a statementn
In addition, each user can register only one encrypted currency trading account. Any deposit or withdrawal requires face-to-face authentication. Kim pointed out that only customers who have passed the verification process can do cryptocurrency trading.n
Bank to create user authentication systemn
One of the government’s emergency measures involves a virtual bank account. The ban on such accounts by South Korean regulators prompted major local banks to announce that they no longer provide this service to Cryptocurrencies Exchanges, which could cause some exchanges to leave the industry.n

Specifically, regulators require banks to authenticate users of virtual bank accounts. However, the bank said they sent these accounts to cryptocurrencies and did not know who the corresponding users were.n
Financial institutions are currently working with the Korean Blockchain Association to find a way to comply. Some of South Korea’s major banks have started to work together to develop a system that identifies virtual account customers. The Agricultural Bank of Korea, Kookmin Bank, Korea Bank for Small and Medium Business, KEB Asiana Bank, Shinhan Bank and Gwangju Bank have all announced plans for this project.n
Kim said that once the banking system is implemented, “we can compare the user information held by the exchange with the bank’s registration information,” and he said that virtual accounts can only be used if the information matches.n
The requirements of the exchangen
The association also put forward requirements for the cryptocurrency exchange, which will be implemented on January 1 next year. Reported:n
n”Virtual currency trading is limited to exchanges with more than 2 billion won (US $ 1.83 million) in sovereign capital, and exchanges, like financial providers, should be able to deploy an information security system, execute internal processes and arrange for information security personnel “n
nIn addition, Kim said the association will temporarily suspend the listing of all new cryptocurrencies. However, these measures are not mandatory, because the association is a private organization and can not compel the exchange to abide by the rules. But the violation of the rules of the exchange will be kicked out of the organization.n
Finally, the association members also agreed to set up an investor committee to accept legal advice. In addition, Kim said, “We will set up a dispute resolution committee under the association and plan to investigate and examine disputes between the exchange and the user.”n

Leave a Reply

Your email address will not be published. Required fields are marked *