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Korean Crypto Exchanges Plan to Adopt FATF Rules for Regulatory Control

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Cryptocurrencies are fast emerging as a secured and potential substitute to fiat currency. The high risks associated with the digital currency have put it under the scrutiny of the financial experts.

Recently, the chief of South Korea’s reputed cryptocurrency exchange Upbit said that the leading crypto exchanges of the country are gearing up to apply the recommendations of a June guidance by Financial Action Task Force. The guidance purports to restrain the illicit use of the digital assets of the platform.

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In a press meet of Upbit Developer Conference 2019, held in Icheon, CEO of Upbit operator Dunamu, Lee Sir-goo said: “(Korea’s cryptocurrency exchanges) are at the nascent stage of discussion.”

“We should take local players into account when implementing the requirements, but in such a way that the guidance works globally as well,” the spearhead further added during the interaction.

Lee, who also serves the responsibility of Dunamu’s group director, quoted that Seoul-based exchanges’ advocacy group Korea Blockchain Association will help the crypto exchanges in bringing the plans mentioned above into reality.

Since 2018, Lee Sir-goo has been performing the duty of the CEO of Dunamu. He earlier was the chief of Kakao, a Korea based mobile software firm, from 2011 to 2015.

According to the amendments of FATF’s guidelines, the virtual asset service providers are to be administered to curb money laundering and financing of terrorism. The recommendations also render to license and administer the service providers by making them open for supervision and monitoring.

Dunamu’s spearhead, Lee, sees FATF’s recommendations as a favorable step for Korea’s crypto exchanges. The Korean authorities make it compulsory for the crypto exchanges to own real-name bank accounts. It also demands the renewal of the contract of the crypto exchange with the commercial bank getting renewed for every six months to accept the trading of Korean Won on the exchange.

While addressing the lawmakers and drawing their attention to the crucial issue, Lee said,

Burdens of banks that create accounts for cryptocurrency exchanges are likely to be relieved when FATF recommendation takes effect here.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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