South Korea Adds New Laws For Banks And Cryptocurrency Exchanges

The South Korean government is talking tough. It wants nothing but to bring sanity in the cryptocurrency business, which is after releasing new guidelines to govern the sector this week. Over the past several weeks, the government has been reminding exchanges that there will be changes, which did not go well with trades. It was last week that eight exchange firms were fined for violating privacy laws. KCC is the department that is responsible for ensuring safety and privacy of users. The agency found out that many domestic exchanges were not following the rules.

Why Did South Korea Add New Laws For Cryptocurrency Exchanges?

Although the government releases these rules, they are not new. It is only making the guidelines official. Banks and several exchanges in South Korea already know the rules. Those that have failed to observe the rules in the past have found themselves on the wrong side. Tuesday this week was the day the government made clear the announcement. The document containing the guidelines that the government had earlier announced was out. It was made public by the Financial Services Commission (FSC) Vice Chair Kim Yong-burn.

The Document Details Several New Measures

The vice chair said that the document details several measures. The measures are part of the efforts of the government to clean up the mess that exists in the cryptocurrency market. Mr. Kim Yong said that the government wants all businesses to emulate pay per head business. He also maintained that rules in the document would bring to an end to speculation surrounding the government’s stance on digital coins.

New Guidelines For Cryptocurrency Exchanges

Apart from the guidelines that are directed to digital currency exchanges, the vice chair said something else. He said that the government has also released anti-money laundering (AML) regulations. These rules prepare the Korean Financial Intelligence Unit (FIU). The unit is a division of the more substantial FSC. The new guidelines go to all banks and financial institutions that deal with digital coins.

New Government Laws Plus Regulations For banks And Digital Currency Exchanges

The main aim of these new guidelines is to ensure the digital currency sector is streamlined. The nature of cryptocurrencies is that you will not know who you are trading with. But according to the new regulations, banks and exchanges should only handle accounts that have real names. The names of individuals operating accounts should be original and confirmed by banks. The government has imposed considerable fines to those found violating the rules. After the government’s announcement of the new regulations, the number of those first cryptocurrency accounts went down drastically.

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