South Korea Boosts Crypto Exchange Security With Early Implementation Of Stricter Regulations
South Korean financial authorities are poised to introduce stringent regulations for cryptocurrency exchanges. According to reports from Korean media outlet News 1, the forthcoming guidelines pertain to issuing real-name bank accounts, involving previous criteria outlined by the Federation of Korean Banks. The new regulations require cryptocurrency exchanges holding real-name accounts to establish a reserve fund ranging from a minimum of 3 billion won to a maximum of 20 billion won, effective September.
Under these rules, exchanges must accumulate 30 percent of their average daily deposits or 3 billion won, whichever figure is higher. Notably, if the calculated 30 percent exceeds 20 billion won, exchanges can accumulate up to that maximum threshold. Enhanced user verification processes, including Know Your Customer (KYC) protocols and additional fund transfer checks, are also incorporated into the operational guidelines set by the banks. Originally planned for implementation in January 2024, the early adoption of the “reserve accumulation” requirement in September indicates a proactive approach by both the financial authorities and the exchanges. The regulations also address user protection, ensuring a safer trading environment.
Source
https://t.me/Bitcoin_Crypto_Coin_Calendar
