Saturday, February 4, 2023

Banks To Help Financial Regulators In Finding Details Of Cryptocurrency Exchanges

In order to strengthen its grip over illegal crypto activities, the financial authorities have asked the banks to find out the total number of crypto exchanges being operated in the country.

According to a local media report, the financial regulators need banks to provide their current business status with crypto exchanges in the country.

Regarding this, an official at a local crypto exchange has said, “Currently, cryptocurrency exchanges can operate without permission from the government, which is why it is difficult to identify the exact number of cryptocurrency exchanges. One way to find out is to track corporate bank accounts that collect customers’ funds.”

As per the reports, there are four large cryptocurrency exchanges in the country that uses real-name accounts for each user. Apart from them, there are smaller exchanges too that collect their funds from the users under one corporate bank account.

From September 24, the financial regulators will start imposing sanctions on the unregistered businesses in the country, therefore, the authorities have asked the exact number of crypto exchanges. 

Soon a new law would be implemented in Korea, and according to that law, the crypto exchanges should have an information security management system. Also before September 24, those exchanges should partner with local banks present in the country.

Additionally, before the grace time period, the exchanges would have to report the financial authorities, legally. But if they failed to do so, and still operating in the country then the exchanges would have to face some legal action. 

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