South Korean Regulatory Review: All Exchanges Meet Requirements
The Korean Blockchain Association (KBA) announced the results of an intensive self-regulatory review of Korean exchanges, stating that all exchanges assessed fulfill the minimum requirements established by KBA in April 2018.
The industry self-regulatory body approved all 12 exchanges participating in the audit, which include UPbit, Bithumb, OKCoin Korea, CoinOne, Huobi Korea, and Hanbit. The investigation, executed by the KBA, is aimed at creating transparency standards as well as eliminate money laundering and insider trading.
Korean Regulators Relax
The audit was announced by KBA executive Jeon Ha-jin at the Korea Federation of SMEs, and outlined a set of rules that include a clear separation of client and exchange capital, rapid abnormal transaction response times, and the establishment of advanced client protection systems.
The KBA also requires participating platforms to hold a minimum equity of 2 billion Won ($1.7 million USD) and publish regular audit and finance reports. The conclusion of the KBA review follows a shift in regulatory stance from the South Korean government, with the South Korean Financial Supervisory Service beginning to form a framework for the implementation of the G20s set of unified cryptocurrency regulations:
The Financial Supervisory Service stated in May that a more nuanced approach to cryptocurrency regulation is inevitable:
“It’s almost certain that cryptocurrencies will be classified as assets and the main issue will be centered on how to regulate them properly under the unified frame that will be agreed upon between G-20 nations. Given the current stance, this isn’t good, but we will step up efforts to improve things.”
South Korean National Assembly to Debate New Crypto Bills
Subsequent to the FSS announcement, the South Korean government worked to fast-track cryptocurrency and blockchain regulations, with the South Korean National Assembly conducting a session in which legislators will submit a series of draft crypto bills. The session, which will be conducted from July 13 to 26, will see regulators discuss the future of cryptocurrency and initial coin offering markets within the country.
The upcoming session will see three members of the national assembly submit bills, including Representative Park Yong-jin of the ruling Democratic Party of Korea, Representative Chung Tae-ok of the main opposition Liberty Party Korea (LPK), and Representative Choung Byoung-gug of the minor opposition Bareun Mirae Party.
Opposition party member Representative Song Hee-kyung of the LPK will also host a policy debate on the security practices of domestic cryptocurrency exchanges co-hosted by the Korea Internet and Security Agency (KISA) on July 19.
Both the upcoming National Assembly session and policy debate coincides with the upcoming deadline for the implementation of G20 unified cryptocurrency regulations in July.
Cover Photo by Timothy Ries on Unsplash
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