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South Korea Approves Local Banks’ Functioning With Cryptocurrency Exchanges

The South Korean government recently conducted a state affairs audit to assess the overall progress and performance of the national commissioners and government agencies. Choi Jong-Ku – the commissioner of national Financial Service Commission(FSC), at the similar forum confirmed that South Korea has no issues concerning security and compliance with the banking process of providing virtual bank accounts to the cryptocurrency exchanges that are operating locally.

Commissioner Choi accentuated that digital asset platforms will now be capable of obtaining banking services from the locally-operated commercial financial bodies, as long as the cryptocurrency exchanges and trading platforms are well-resourced with the Anti-Money Laundering (AML) and Know Your Customer (KYC) systems.

Crypto trading platforms in South Korea are using an exclusive virtual banking account system that enables its users to withdraw and deposit South Korean Won (₩) instantly while securely holding the currency on exchanges. This topical South Korean initiative is receiving acclamation all over the world, as it reflects the increasing confidence of the country towards cryptocurrency. Not to forget; the country formerly denied the cryptocurrency operations within the national premises in early 2018, with the aim of eliminating the risks of money laundering associated with digital assets.

South Korea Approves Local Banks Functioning with Cryptocurrency Exchanges 1

However, the recent public statement by the commissioner sheds light on the updated national stance of South Korea and its financial institutions towards the cryptocurrency operations for the upcoming years. The initiative also indicates that the platforms trading local digital assets will no longer be suffering from the insufficiencies of banking services provided by the local financial institutions.

The South Korean Blockchain Association (SKBA), which embodies all the major, medium and small size cryptocurrency exchanges within the local market, also voiced its confidence and hopefulness towards this recently established standpoint of FSC, and also added that all the former problems related to AML and KYC, faced by FSC earlier in 2018, have now been successfully resolved. Considering the concerns of local financial institutions and FSC towards the security breaches, SKBA, and the largest cryptocurrency exchanges has also initiated the practice of getting themselves insured in order to guard their investors’ funds.

Eminent cryptocurrencies like Gopax, Coinone, Bithumb, Korbit, and UPbit etc. have also been recently permitted by the South Korean government for having satisfactory internal management system and security measures in practice. The security analysts at South Korean Ministry of Science and IT Planning (MSIP) and Korean Internet & Security Agency (KISA), also endorsed in August that Bithumb, Korbit, Coinone, Upbit, Coinlink, Coinplug, Coinnest, and Huobi have a concrete security and information management systems that are successfully implemented in their respective exchanges.

The infrastructure of South Korean crypto exchange market is rapidly strengthening and hence the competition is also buttressing. Key players like Coinone, Gopax, Korbit, and Upbit are gaining further shares in the market and offering potential investors with various marginal options.

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