Amidst a dynamic landscape in the South Korean crypto
asset landscape, exchanges are bracing for changes, with the Korean Federation
of Banks issuing real-name account operation guidelines that demand a minimum
reserve of 3 billion Korean won (USD $2.3 million).
While the guidelines aim
to safeguard users from potential mishaps like hacking or system failures,
cryptocurrency exchanges, which are already grappling with capital erosion,
could face challenges. According to the local media publication News 1,
the financial authorities, in conjunction with the Korea Federation of Banks,
will unveil comprehensive standards for the issuance of bank accounts as part of the new guidelines.
This shift is reportedly
designed to ensure exchanges are better equipped to provide compensation to
users in scenarios involving cyberattacks or technical glitches.
In anticipation of the impending reserve accumulation
requirements set for September, exchanges facilitating transactions between
fiat currency (won) and cryptocurrencies in South Korea have reportedly made
substantial progress in meeting the standard. However, the situation is
markedly different for coin market exchanges, which facilitate coin-to-coin
transactions.
Many of these…
