The fight to regulate the crypto industry continues in every country in the world. Many have wondered if it is possible to regulate cryptocurrencies, given that it is still an evolving technology that is still looking for its final form, use cases, price, and more. But, one thing that can be regulated in the meantime is companies that work with crypto, such as exchanges.
To that extent, South Korea has requested cryptocurrency exchanges operating under its jurisdiction to comply with new security requests, and to do so soon. If they manage to do so in June of this year, the country could get its first regulated cryptocurrency exchange early in the third quarter.
South Korea’s effort to regulate exchanges
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The country seems quite determined to make it happen and reorganize the market by launching a fully regulated exchange for August or September. Recent reports from the country’s local media also said exchanges must submit a report to the FIU (Financial Information Analysis Agency of the Financial Services Commission). This is the regulatory authority of South Korea, which has made several moves to regulate space.
South Korea has already banned privacy coins, conducted a test of its own CBDC, and set about taxing cryptocurrencies. Now, he plans to regulate exchanges, which have been asked to follow compliance laws before, to protect his customers.
One of the orders given to the exchanges was to obtain the approval of the ISMS (protection of the Information Protection Management System). Of the 60 identified encryption service providers, around 20 have already received certification. Owning this document means that the exchange is capable of preventing hacking attacks and similar security incidents.
Other than that, exchanges have to enforce KYC and AML procedures. There are currently only four exchanges that operate using real name verification deposit and withdrawal accounts, and those are Bitsum, Coinone, Upbit, and Kobit. They are asked to submit a report to the FIU, although none of them have yet done so.
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