South Korea: Banks Involved In Servicing Bithumb And Coinone Crypto Exchanges To Be Inspected

To Be Done By FSC

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The financial services commission (FSC) which is a South Korean crypto regulator made an announcement that it would be involved in an inspection of three banks based in South Korea involved in servicing of crypto exchanges. The main aim of this was to check for the compliance on April 9.

According to a statement which was issued, the three banks are meant to undergo an inspection from April 19 to April 25. Therefore, during the inspection, the regulators main aim is to check if the crypto exchanges conform to the anti-anonymity regulations which were announced an introduced to the crypto exchanges in January 2018.

According to a report made by Cointelegraph, Seoul took the major steps required to get rid of the anonymity and also remove the multiple trading accounts which are majorly based on the domestic crypto exchanges.

Therefore, as a section of the new legislation which binds the crypto exchanges, the Koreans who are involved in trading with the exchanges should only have a single account. Therefore, the identity details which are used in trading in the crypto exchange should also match the details in the bank account.

The requirements, however, have placed a new pressure especially on the two exchanges and also the banks to make sure that they follow the regulations set. On the same note, smaller institutions and exchanges have been finding it hard to cope with the new demands of the FSC.

Currently, the Hana Bank, the Kookmin Bank, and the Nonghyup Bank will be subject to individual scrutiny. In this light, Nonghyup will stand out as the service partner linked to Bithumb and Coinone. These are the two biggest cryptocurrency exchanges based in South Korea.

Therefore the investigator is set to check if the rules have been adhered to which also include the major anti-money laundering and also the customer data providence. On the other hand, the preparations will still be going on for the filling of the legal gaps which still are not yet done especially in the local cryptocurrency economy. Therefore, the FSC will release the tax legislation by June.

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