South Korea has already asked cryptocurrency exchanges to comply with their new regulatory requests. The country is all set to see its first regulated cryptocurrency exchange launch in the third quarter of this year. The publication states that the financial regulators are planning to reorganize the market.
The report is also highlighting the fact that the virtual asset service providers need to go for filing a report to the regulatory authority in the country, the Financial Services Commission’s Financial Information Analysis Agency (FIU), within 24th September. This move is simply a huge step forward for this country. It has begun taking effective actions for the crypto market.
The decision about launching a regulated crypto exchange is accompanied by the ban of privacy coins. Also, it is including the taxation efforts, along with the trial of Central Bank Digital Currency. The regulators are also asking exchanges to abide by the compliance laws of the past. It is mainly done to protect investors and prevent funding for all kinds of illicit activities.
One of the orders that have been imposed is the approval of an Information Protection Management System protection (ISMS). There are twenty virtual assets service providers who are receiving the certifications. 60 out of them have been identified. The certification is a recognition of the ability of an exchange to prevent security incidents like hacks.
There is another major point for contention, which is Know Your Customer and Anti-Money Laundering initiatives. Kobit, Bitsum, Upbit, and Coinone are the only four cryptos that are operating with real name verification withdrawal and deposit accounts. These exchanges will need to file a report to the FIU; however, none of them have done yet.
Whichever exchange is following all of these demands will become the first regulated exchange in the South Korean Market. And this needs to be done within June.
This new information is another sign that South Korea is akin to ensure complete regulation. Most of the individuals have welcomed their taxation law. However, some of them have disagreed with these taxation laws. It should be up to par for the stock market.
The country is also planning to conduct a test and trial for CBDC. It will make another major country to consider for the CBDC. The Bank of Korea has announced that it is not necessarily planning to release the digital currency; instead, it is planning to test for feasibility and functionality.