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South Korean banks are further tightening cryptocurrency regulations.

South Korean banks are further tightening cryptocurrency regulations

South Korea financial services Commission announced new rules. These new rules may affect around 60 unauthorized cryptocurrency exchanges of the country. FSC also prepared a new policy for banks. According to the policy, banks have to classify crypto clients as high risk.

New Guidelines

According to the Korean Times report, FSC announced new guidelines on Sunday. These guidelines also are intended to see that crypto exchanges strengthen their monitoring. Moreover, the crypto exchanges should monitor transactions and uphold vital user ID requirements.

Four Exchanges

However, only the four largest South Korean exchanges have set up real name accounts that banks have cleared. FSC has to justify its actions by noting a high demand from consumers for their asset protection held at smaller cryptocurrency exchanges.

September 24

Exchanges operating ability under the radar will also come to close in September. The deadline for the license is on the 24th of the month. The financial intelligence officials will examine all the applications for a period of 3 months.

Fake Accounts

The officials will mainly focus on preventing the use of borrowed or fake accounts on the exchange platforms. The banks also have to refuse the services to the clients who cannot provide ID verification measures.

Suspicious Activities

Moreover, the banks also have to monitor suspicious activities like large transfers to unidentified accounts. The regulators tell banks to open books on cryptocurrency exchanges. FSC is also forcing banks to take the responsibility of issuing real-name accounts.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.