28 Korean crypto exchanges were able to get a clearance from the regulators to remain open, says the government of South Korea. The government issued a list of requirement needed to be met before September 24 to continue operations.
The South Korean government like many other governments is trying to regulate the crypto firms working in their country. The increasing number of scams have forced the governments to do so. The asset protection of its citizens is the responsibility of the state. Therefore, the South Korean government issued a set of rules which must be fulfilled by each firm in the country to continue the operations in the country.
The certification from Information Security Management System (ISMS) before September 24 and reporting to Financial Intelligence Unit (FIU) was necessary for the firms. 28 Korean crypto exchanges have met the initial requirement of the government to remain open. The head of FIU, Jeon Yo-seop, has said about the deadline:
It is unlikely that there will be additional certified virtual asset trading platforms.
28 Korean crypto exchanges will continue their operation:
The government has issued a list of 28 Korean crypto exchanges which will remain open even after the deadline. The firms which want to offer to trade in Korean won (KRW) must do a partnership with the country’s banks. Only the top four firms in Korea (Coinco, Korbit, Upbit, Bithumb) were able to secure the partnership with banks.
24 crypto exchanges will be able to offer trade only in crypto, the remaining 4 can trade-in Korean Won (KRW) also. Business closure guidelines have also been provided to the firms. The firms will notify the customers 7 days before closing and 30 days’ window will be opened for users to withdraw their funds.
This regulation of firms is good for user protection and the chances of scams will decrease in the future. For more content click here.