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Mar 28, 2018

South Korea has new rules for cryptocurrency exchanges

Some months ago, we heard the news that South Korea has placed a ban on all cryptocurrency companies operating in the region. This was another big setback for the crypto traders and the investors in Asia following the similar ban placed on this financial industry in China.

We can understand the skepticism these countries have towards cryptocurrency and its processes, which involve the use of blockchain technology. There are speculations about the impact of the cryptocurrency industry on the financial economy in Asian countries. Considering the huge investments reported during cryptocurrency trading, it is not surprising that the Asian governments are alarmed about this new trend. However, blockchain technology and cryptocurrency trading activities have enormous benefits to the economies in these regions, if only they are properly implemented and managed.

In South Korea, the reports indicate that the government has agreed to approve only a few selected cryptocurrency exchanges under certain terms and conditions. One of the conditions is that the crypto exchanges should register their operations with six identified banks in South Korea. When this is done, these cryptocurrency companies will provide the details and information of their users who will be mandated to open accounts at any of these banks.

This means cryptocurrency traders will only be able to trade when their details match the information on their official bank accounts. Many crypto exchangers have agreed to this condition, and the synchronization process has begun. It is expected that this decision taken by the South Korean government will eliminate financial crimes such as money laundering and the government will have better access to monitor the affairs of the cryptocurrency companies operating in that region.

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