South Korea’s financial regulator has introduced stricter measures that would affect the renewal of accounts of top cryptocurrency exchanges in the country, including Bithumb, Upbit, Coinone, and Korbit.
According to a local news report on The BChain today, this is coming after the Financial Action Task Force (FATF), an intergovernmental established to formulate policies to combat money laundering and terrorist financing, released news guidelines for cryptocurrencies in June.
The FATF crypto guidelines will reportedly help to combat all forms money laundering, terrorism financing and other criminal activities relating to digital currencies.
With this, South Korean banks, including ShinHan Bank, the NongHyup bank, and the IBK, would have to comply with the new requirement.
Before the introduction of the new accounts renewal policy, it was a norm for trading platforms to renew their accounts with banks every six months. However, the four crypto exchanges have an urgent need to renew their account management contracts with banks.
Banks that provide financial services for crypto exchanges without complying with the new requirement would be held responsible for the actions of crypto exchanges should things go wrong.
As countries try to establish more “secured” rules for crypto exchanges, it is only a matter of time before a global financial regulation will be established and adopted globally. Countries that refuse to come up with regulations like this may likely be excluded from the global financial network.
As reported by Coinfomania, data published by the South Korean Ministry of Justice, revealed that the country had recorded the loss of over 2.7 trillion won (USD 2.3 billion) in various crypto scams within two years.