South Korea will start fighting crypto exchanges without registration

South Korea will start fighting crypto exchanges without registration

South Korean government changes a bill regulating cryptocurrency exchanges, according to which the leaders of unregistered platforms face imprisonment.

The amendment aims to encourage exchanges to develop consumer protection systems and adopt international AML / CFT standards recommended by the FATF. First of all, ensure that virtual accounts served by banks are linked to the real personalities of users..

The new rules also simplify the registration process, certification requirements for information security management systems and the receipt of virtual accounts. In the future, for non-compliance with the rules, punishment is provided in the form of a fine of up to $ 42.5 thousand or imprisonment for up to five years.

The ban on anonymous accounts was introduced last year, but since then only the exchanges Bithumb, Upbit, Corbit and Coinone have met all the registration conditions..

If in the process of agreeing on the bill, the innovations are left unchanged, then crypto exchanges will be controlled in the same way as traditional financial institutions. This is expected to stabilize the digital asset market.

However, the bill will still be considered by other state bodies, therefore, it may undergo major changes..

South Korea will start fighting crypto exchanges without registration

Increased control is associated with growth fraud in this area. According to the South Korean Ministry of Justice, the financial damage from crimes related to cryptocurrency committed in the country between July 2017 and June 2019 amounted to about $ 2.3 billion..

text: Ivan Malichenko, photo: if24