South Korea Adopts New Regulations for Local Crypto Exchanges
April 18, 2018
Korean Blockchain Association (KBA), a self-regulated cryptocurrency organization of South Korea, has adopted new rules to regulate local crypto exchanges: authorized capital is now limited to $1.8 mln and platforms are obliged to keep all records on user transactions within five years.
KBA founded in mid-December 2017 by members of local crypto companies has put forth a new set of rules to control major local trading crypto platforms.
KBA’s experts are reported to inspect 14 crypto exchanges soon including OKCoin, Bithumb, Gopax, Coinone, etc. initially all platforms have to check identities of its crypto traders. After that crypto exchanges will keep transactions record for the next five years. Each deal will have to meet Anti-Money Laundering Guidelines of the South Korean government. Specialized FDS system will monitor the process as it is able to detect any scam attempt and report on it to regulatory bodies.
On top of it, each exchange will have its own listing committee formed for ICO currencies as well as internal rating system for new projects.
KBA has also passed a resolution to limit authorized capital of exchanges to 2 bln wons (~ $1.8 mln) and introduced financial statements and auditing mandatory for all companies of the association.
It being known that release body of rules will be ready by end of May, while each associated exchange has to submit all required documents by June 8.