Banks of Korea start working with the cryptocurrency exchanges
South Korean Cryptocurrency Perspective
The state affairs which is held by government allows an evaluation to take place about how well the agencies of the government have been working and how well the country commissioners are working. They stated that if the platforms where crypto trading takes place is doing well especially with the systems like know your customer or KYC and the money laundering prevention of AML system then that means that the platforms for cryptocurrencies will be able to use the banking services from the other financial organisations within the company. The commissioner went on to say that if the proper systems are in place then there is no issue in allowing cryptocurrency exchanges to have bank accounts.
In South Korea there exists a unique system for the virtual bank accounts and this allows users to put money in their accounts and take money out as well making them secure and worth using as well.
In the early parts of the year the government of the South Korea actually actively encouraged the facts that banks and the exchanges of cryptocurrencies should be able to work together so that the laundering of money could not be done via cryptocurrency. If you would like to read more about cryptocurrencies impact visit this article.
Prominent Banking Relationships
It has been over a year since a huge bank in South Korea called Noghyup has worked with cryptocurrency exchanges for over 1 year and has been providing services to local cryptocurrency exchanges as well. Around the middle of 2018 even Noghyup was pressured to finish the services that it was giving to bethumb and several other cryptocurrency exchanges.
The commissioner stated that the government is treated the cryptocurrency platforms this way since they wish that there will not be anymore problems regarding a lack of banking services from a large amount of financial organizations in south Korea.
The organisation called the blockchain association of South Korea has been responsible for representing the small and mid-sized along with the larger cryptocurrency exchanges in the market of South Korea, it was responsible for expressing a lot of optimistic feelings about the new stance that the FSC has taken regarding the cryptocurrency and cryptocurrency exchanges in general along with stating that the problems that it faced initially have been resolved.
The FSC has had certain concerns regarding the problems regarding the breaches of security and the South Korean Blockchain Association along with the biggest exchanges in the country have been trying to get insurance so investors can safeguard their investment. If you would like to read more about Korea’s bank accept crypto exchanges visit this article.
Reasons for Approval
Several large exchanges like Coinone and other exchanges were approved by the South Korea government since they have a large amount of security along with internal management in place.
Crypto Market Infrastructure
The crypto exchange market infrastructure has been becoming stronger as time goes on
This week bethumb South Korea’s second largest cryptocurrency exchange was able to eliminate everyone of the options regarding banking that it has on the platform. This decision came out of the blue and left investors consumed and they began to experiment with certain newer exchanges which gets financed by the second biggest bank in the world that is Shinhan. Gopax thus assisted maybe by the Shinhan bank is able to support the transactions of the local South Korean banks and also for Upbit.
The newer key players in the crypto market of South Korea have led to an increase in competition and thus the older ones have been gaining a share in the market and investors are being given more and more varied options.
Korean Exchanges in early 2018
The early portion of 2018 in Korea was actually marked by the government of South Korea stating that the banks of the country were actively encouraged to work with the cryptocurrency exchanges within the company. However, the stance later changed as well to reflect something more difficult. Since cryptocurrency exchanges were told that money laundering could begin to take place through the banks using the digital cryptocurrencies.
The commissioner of the local branch of government dealing with these situations released a statement saying that by actively working with cryptocurrency exchanges the company meant that they wanted banks to start providing the exchanges with a large amount of banking services. If you would like to read more about Korean crypto exchanges visit this article.
Requirement for Bank Support
Commissioner Choi has given out guidelines on what can and cannot be supported by the banks that are allowed to work with cryptocurrency exchanges today. The platforms that require support need to have certain qualities within themselves in order to be able to be secure enough for the individuals to have faith in the security. The systems in place are called
- Know your Customer (KNC)
- Anti-money laundering which prevent illegal actions being committed on the website.
The system within South Korea is extremely unique in itself. The reason is that they have a system which is called the virtual bank account system. This allows the individual using the products to be able to conduct transactions from their functions as any normal bank would allow. This system is in place to allow the banks to not be able to fall into the trap of money laundering through digital assets.
The country currently is one of the innovators of the present situation of the country and in this way, it is considered a safe haven for cryptocurrency related businesses everywhere. In the future many prominent exchanges might shift their exchanges to the country if the situation remains the same. If the endeavour succeeds in South Korea then that sets a good example which can be followed by the world however, of course the other possibility is also present.
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