28 S. Korean crypto exchanges comply with FSC—only 4 allowed trading in KRW
South Korean crypto exchanges’ (CEs) regulatory compliance developments are scoring headlines yet again. Albeit on a positive note this time. As reported earlier, the Financial Services Commission’s (FSC) September 24 compliance deadline is soon approaching. Prior to the said date, S. Korean CEs must register with the Financial Intelligence Unit (FIU).
While earlier the FSC was expecting 40 of 60 S. Korean CEs to close owing to their potential regulatory non-compliance. The South Korean government has now announced that 28 CEs are now complying with the preliminary requirements. Just that only 4 CEs fulfil Korean Won (KRW) trading stipulations.
The “Act on Reporting and Using Specified Financial Transaction Information” now stands amended. It mandates CEs to gain an Information Security Management System (ISMS) certification plus duly submit a report to the Financial Intelligence Unit (FIU).
Some of the 28 ISMS-certified CEs are as follows:
- Dove Wallet
The only 4 CEs permitted to allow trading via KRW are Upbit, Bithumb, Coinone, and Korbit. Other exchanges aren’t permitted to initiate KRW fiat-led crypto trading as it requires partnering with banks for users’ official name (ID) verification, etc. As a result, over 24 CEs will operate as crypto-only exchanges. The S. Korean financial authorities (FAs) are vigilant on exchanges’ customer fund management practices. The FAs want soon-to-shutdown CEs to return customers’ money to them in a timely and appropriate manner.