Cryptocurrency exchanges in South Korea announce self regulatory policies
On April 17th, exchanges in South Korea announced self regulatory policies. 14 exchanges had come together to form the group Korean Blockchain Association. This was done to increase transparency and ward off money laundering and insider trading.
Some of the members include Bithumb, Coinone, Upbit, OKCoin and the Dayli Financial Group.
According to the Korean Times,
The rules suggest domestic crypto exchanges (1) manage clients’ digital coins and their own separately (2) cope with abnormal transactions quickly (3) float new crypto with enhanced client protection system (4) hold a minimum equity of 2 billion won and (5) publish regular audit and finance reports.
On regular intervals, a body appointed by the association would look into the operations of these exchanges to identify backdoors for money laundering, insider trading etc.
A report of the first inspection (to be done on May 1st) will be provided to the association on May 8th.
The act of self regulation is something that is slowly spreading across countries. The Winklevoss Brothers had outlined a proposal for a Virtual Commodity Association. The purpose was self regulation of cryptocurrency exchanges in the USA. The Japan Virtual Currency Exchange Association was formed by the Japanese exchanges on April 12th with the objective of self regulation. In India, the DABFI was formed as a means of self regulation by the crypto currency exchanges.
While it is a good move by the exchanges to prevent these evils, it will not be a deterrent for strict government policies and oversight in South Korea, especially in the future occurrence of any hack or money laundering action.
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