Regulatory Issues Affect Korean Crypto Exchanges

[MarkRoberts]

Korean cryptocurrency exchanges have faced several difficulties in recent months as the country’s regulatory climate has changed. South Korea’s Special Funds Act was amended this spring, requiring them to work with local banks to guarantee that traders are given real-name accounts by September 24, when the new regulations take effect.

On the other hand, leading financial institutions have been hesitant to engage with cryptocurrency trading platforms for fear of being exposed to fraud, money laundering, hacking, and other dangers associated with cryptocurrencies. So far, only the four biggest exchanges, Upbit, Bithumb, Korbit, and Coinone, have been able to form such a partnership with commercial banks. The NH Nonghyup Bank serves Bithumb.
Eun Sung-soo warning

If they fail to obtain a cooperation agreement with a bank, hundreds of smaller exchanges may be forced to shut in September, as Financial Services Commission Chairman Eun Sung-soo warned in April. A couple of firms, including Bithumb, have begun to delist certain high-risk digital currencies and issue warning lists for others to prepare for the new rules.


https://mycryptoparadise.com/bithumb-cancels-trademark-agreements-with-two-foreign-exchanges/