South Korea: Crypto Exchanges Can Safely Work With National Banks

The head of the financial regulatory authority in South Korea announced that crypto exchanges that meet the requirements of KYC and AML can fully use the services of commercial banks to open virtual accounts. Earlier, according to the results of the inspection, the authorities approved a number of Korean marketplaces and promised to lift the ban on ICO “in the near future.”

The Chairman of the Financial Services Commission (FSC) – the financial regulator of South Korea – Choi Yong-Ku confirmed that the practice of opening virtual accounts by commercial banks for users of cryptocurrency exchanges complies with legislation and security standards.

The head of the regulator stressed that crypto exchanges are equipped with the necessary systems to comply with the rules of KYC and AML, and therefore can fully use banking services.

Virtual bank accounts are a unique phenomenon. They were developed in South Korea specifically for cryptoactive asset traders with the goal of safe storage and quick transfers of Korean fiat currency – won.

Such sites as Bithumb, Upbit, Gopax, Korbit, Coinone, and others were recently approved by the Korean authorities as a result of the audit, as they took appropriate measures to ensure security and strengthen internal management systems. Recall that large-scale checks of Korean cryptobirth continued from 2017 after a series of hacker attacks.

Earlier, the Korean authorities called on different countries to unite to develop universal international standards for regulating the crypto-industry. A week ago, a representative of the Korean parliament said that the ban on holding an ICO, introduced in 2017, will be lifted “in the near future.”