Jeon Ha-jin, one of the KBA executives who spoke in a press release on April 17 in the Korean Small and Large Business Federation, located in the capital of South Korea, Seoul, said that the regulatory system aims to make the transactions in the cryptocurrency exchanges transparent in the best possible way. With the new regulatory system in Korea, possible money laundering, information trade and other illegal activities to be conducted on cryptocurrency exchange platforms will be prevented and the security of users will be increased.
In the regulation consisting of five general requirements, there are conditions such as the effective management of the cryptocurrency by the exchange market, fund of at least 2 billion won ($ 1.8 million) and regularly auditing and publishing financial reports.
This regulation, which includes 14 cryptocurrency exchanges, including world giants like Bithumb, Upbit and OKCOin, was announced to take effect by 1 May.
The first signals of the KBA’s work on the new regulatory system were given in February. The first goal of the project is to eliminate the “Bitcoin madness” of the country that emerged in December 2017.
The Financial Services Commission, one of South Korea’s financial regulatory bodies, declared that it will examine the three banks offering banking services to cryptocurrency exchanges in the country to check whether they conform to the latest regulations.