7 South Korean Exchanges Now Working To Promote A Healthy Crypto Environment

By Rishma Banerjee

As per recent reports, seven major South Korean Crypto exchanges have collaborated together, to promote a safe and healthy crypto environment. Mutual efforts in the likes of information sharing and the real-time monitoring of unusual transactions will be carries out by them, in order to achieve said goals.  The representatives from the seven exchanges, who on Monday signed an “Agreement for the creation of sound cryptocurrency ecosystem” in a parliamentary policy debate were Upbit, Bithumb, Korbit, Coinone, Gopax, Coinplug (Cpdax), and Hanbitco. According to reports by a local media, their main aim now is to create “a healthy cryptocurrency ecosystem … to prevent crime and protect investors by creating a sound cryptocurrency ecosystem and preventing money laundering.”

As per the terms of the terms of the agreement,  the exchanges will set up a consultation system for prevention of crime and investor protection, implement real-time monitoring of abnormal transactions such as money laundering and voice phishing, strengthen customer identification to prevent illegal transactions, as well as introduce some restrictions on transactions with unverified customers.
While the South Korean government is working on institutionalizing crypto exchanges, the urgent need for government-level regulations was also highlighted as self-regulatory measures are not legally binding. An industry official was quoted saying:

With this agreement, exchanges can establish a close cooperation system and improve their image for investors, but in fact, there is no special penalty for failing to comply.

Head of the financial innovation bureau at the Financial Services Commission (FSC), Kwon Dae-young, elaborated about crypto exchanges and said:

“Currently, the government’s position has not changed much since it was revealed last December or January this year… We are trying to institutionalize [cryptocurrency exchanges] but before we do, we have to answer the question of how to deal with the damage and tears of many virtual currency investors. We must see if any of the projects that can help the people in their daily lives have been presented. Trust and authenticity are important.”

President of Dunamu Inc., Lee Seok-woo, which operates cryptocurrency exchange Upbit, was present at the meeting and proposed several measures for the regulation of cryptocurrency exchanges, including minimum qualifications and standards, AML/KYC (anti-money laundering / know-your-customer) obligations, and an exchange registration system. Lee was quoted by Business Watch as saying:

If you [crypto exchange] cannot meet the standard after a six-month or one-year grace period, you should close it.

Rishma Banerjee

Rishma is currently pursuing a bachelor’s degree in International Relations and has a special place in her life for sifting through all sorts of random trivia, thank you very much.

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