Law and Legislation

Guidelines For Banks Prior Evaluating Cryptocurrency Exchanges – South Korea.

Earlier on 2nd May, the KFB [Korea Federation of Banks] published a group of “guidelines” for banks to follow when evaluating cryptocurrency exchanges. The rules mostly concern exchanges’ security protocols, their susceptibility to hacks, the thoroughness of their user databases, and their standards for listing tokens. On the other hand, banks are also expected to review exchanges’ corporate structure and therefore the transparency of their operations.

Although several industry insiders have come to assume that the Big 4 will survive the approaching regulatory tsunami, it’s as if there are no guarantees for even these major players.

Upbit, the leading exchange operational within South Korea by volume, recently delisted 24 tokens and removed the fiat on-ramps for 5 tokens. Many view this move as an effort by Upbit to get rid of any potential risk in its upcoming assessment by K Bank.

There is also speculation surrounding the potential impact of an ongoing fraud investigation of one of Bithumb’s major shareholders.

Compared to other cryptocurrency exchanges, however, the Big 4 have much less to stress about. Presently, there are no South Korean banks that have publicly expressed interest in forming any collaboration with a cryptocurrency exchange outside of the Big 4. Leaders of smaller exchanges have even implored the FSC to encourage banks to a min of negotiating with them.

Leave a Comment

Your email address will not be published. Required fields are marked *