South Korean Regulators Work Together With Banks to Understand the Field Better
South Korean regulators asked the country’s banks to reveal their cryptocurrency businesses. They need this information to see how many exchanges operate around the country. It’s a part of a big government’s program on rearranging the regulation of digital finance in a stricter way.
At the moment, crypto exchanges in South Korea operate without registration, this is why it’s impossible to discover their exact number. To make it clear, the regulators want to track the corporate bank accounts with the customer’s funds. Small exchanges use single bank accounts for all the funds of their customers, while bigger ones use the identities of each customer.
Supposedly, the number of the exchanges that operate in South Korea now, is from 100 to 200. The unregistered ones have the time to legalize their activity before September, 24th. The new law requires that exchanges should use the information security systems and pay taxes. However, the Democratic Party of South Korea demands this law to be delayed hoping that it will attract votes from young progressive people.