The Korea Federation of Banks (KFB) is planning to introduce a new requirement that domestic cryptocurrency exchanges must hold a reserve of at least 3 billion won (approximately $2.26 million). This move is part of the authorities’ efforts to enforce stricter regulations on Crypto Exchanges and ensure the maximum protection of customers.
The new requirement, which is expected to take effect from September 2022, will apply to crypto exchanges with “real-name accounts.” The reserve amount will act as an emergency fund in case of incidents such as hacking attacks. Smaller exchanges will be required to hold a minimum reserve of $2.26 million, while larger exchanges like Upbit, Korbit, and Bithumb must store at least 30% of their daily average deposits.
Some of the leading exchanges in South Korea, including Upbit, have already started complying with the new law. The Korea Federation of Banks has provided guidelines for the exchanges to follow, and the official from Upbit has stated that they are preparing to meet the requirements.
The KFB is also planning to implement additional safety measures, including enhanced know-your-customer (KYC) requirements and authentication for collection transfers, starting from January 2024.
The increased scrutiny on the crypto industry in South Korea follows incidents like the meltdown of Terra’s native token (LUNA) and its stablecoin (UST) in 2022. The crash of these assets left many investors with significant losses and raised concerns about the overall stability of the digital asset sector.
In response to these incidents, South Korean lawmakers organized a meeting with the country’s largest crypto exchanges to establish appropriate rules for the listing and delisting of cryptocurrencies. The aim of these rules is to provide more protection for consumers and ensure transparent and secure operations within the crypto Market.
Overall, the Korea Federation of Banks’ new requirement for cryptocurrency exchanges to hold a reserve is part of a wider effort by the local authorities to regulate and strengthen the crypto industry. By setting up proper guidelines and safety measures, the authorities hope to protect customers and restore confidence in the digital asset sector..
#South #Korean #Crypto #Exchanges #Reserves #Million #Report
The new requirement, which is expected to take effect from September 2022, will apply to crypto exchanges with “real-name accounts.” The reserve amount will act as an emergency fund in case of incidents such as hacking attacks. Smaller exchanges will be required to hold a minimum reserve of $2.26 million, while larger exchanges like Upbit, Korbit, and Bithumb must store at least 30% of their daily average deposits.
Some of the leading exchanges in South Korea, including Upbit, have already started complying with the new law. The Korea Federation of Banks has provided guidelines for the exchanges to follow, and the official from Upbit has stated that they are preparing to meet the requirements.
The KFB is also planning to implement additional safety measures, including enhanced know-your-customer (KYC) requirements and authentication for collection transfers, starting from January 2024.
The increased scrutiny on the crypto industry in South Korea follows incidents like the meltdown of Terra’s native token (LUNA) and its stablecoin (UST) in 2022. The crash of these assets left many investors with significant losses and raised concerns about the overall stability of the digital asset sector.
In response to these incidents, South Korean lawmakers organized a meeting with the country’s largest crypto exchanges to establish appropriate rules for the listing and delisting of cryptocurrencies. The aim of these rules is to provide more protection for consumers and ensure transparent and secure operations within the crypto Market.
Overall, the Korea Federation of Banks’ new requirement for cryptocurrency exchanges to hold a reserve is part of a wider effort by the local authorities to regulate and strengthen the crypto industry. By setting up proper guidelines and safety measures, the authorities hope to protect customers and restore confidence in the digital asset sector..
#South #Korean #Crypto #Exchanges #Reserves #Million #Report
