South Korea Tightens Cryptocurrency Regulations, FSC Announces New Rules

South Korea is looking forward to tightening the existing cryptocurrency regulations in the country with new rules for banks and crypto exchange operators. The Financial Services Commission (FSC) of South Korea has announced new rules that are expected to take effect around 60 unauthorized crypto exchanges in the country.

FSC of South Korea Tightens Cryptocurrency Regulations

As revealed in the data shared by the Korea Times, the new rules announced by the FSC mentioned a new policy for the banks will require that they classify any crypto exchange clients as high risk.

Moreover, in accordance with the Korea Times, the new guidelines were announced on Sunday and those are intended to make sure that the cryptocurrency exchanges reinforce their monitoring of dealings and uphold strong user ID requirements. 

As per the data revealed, only exchanges based in South Korea have set up accounts with real names that have been signaled green by the banks. 

In addition to this, it should be noted that the capability of the cryptocurrency exchanges will be coming to a close in the month of September, with the deadline of the FSC for exchanges to submit requests for an operating license by September 24.

The Korea Federation of Banks Appealed to the FSC for Reduction of Liabilities

The Korea Federation of Banks along with several commercial lenders have appeared to the Financial Services Commission of South Korea regarding the reduction of their liabilities for financial crimes on crypto exchanges.

The reporters were told by an industry official that:

“Banks are essentially forced to take responsibility for issuing real-name accounts. It, therefore, therefore is reasonable that there should be some immunity for undertaking the dangerous and costly task.”

Along with the banks, small and mid-size exchanges based in South Korea have been expressing their concerns at a meeting with the financial regulators.