Cryptocurrency

The Finance Minister Of South Korea Says Yes To Banks Working With Crypto Exchanges

The Finance Minister Of South Korea Says Yes To Banks Working With Crypto Exchanges

South Korea has been progressive in accepting innovation and technology and has done the same with cryptocurrencies and blockchain. A commissioner of the Financial Services Commission (FSC) has reaffirmed that there exist no issues related to banks and cryptocurrency exchanges working together, according to the news outlet Token post.

South Korea More Positive regarding cryptocurrencies

Choi Jong-Ku is the commissioner of the FSC that emphasized that as long as cryptocurrency platform follow regulations and use “Know Your Customer” (KYC) and Anti-Money Laundering (AML) systems, the digital asset platforms will be able to partner with banks and obtain banking services from South Koreas commercial financial institutions.

“There exists no issue in banks providing virtual bank accounts to cryptocurrency exchanges. If digital asset trading platforms have KYC and AML systems in place, there is no problem in issuing virtual bank accounts to exchanges,” commissioner Choi said.

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Korean banks could earlier offer virtual accounts to crypto exchanges to provide traders with more anonymity. In January, South Korea had introduced strict AML rules for exchange operators, designed to prevent anonymous trading by stipulating that all accounts be linked to a ‘real name’ bank account and leading numerous banks to stop providing virtual accounts to comply.

Choi’s statement addressed this mechanism, saying that with adequate security and compliance measures, banks’ provision of the virtual account service faces no issues. The Korea Blockchain Association has positively received the statement.

Investors Optimistic About the Future

A few weeks ago Koreas largest Crypto exchange was sold for $353 million. The exchange is Bithumb and is the largest exchange in South Korea by trading volume. They sold a majority stake in the company to Singapore BK Global Consortium, who then got more than 38 percent of the total ownership.

The country has also, a few months ago, proposed greater worldwide cooperation between regulators for cryptocurrencies and initial coin offerings to prevent money laundering. Yoon Suk-Heun, who is the governor of FSS made a statement of greater cooperation during the opening ceremony of the latest Integrated Financial Supervisors Conference (IFSC) that was held in Seoul and was attended by officials from 15 countries. In particular, he stressed the need to create a global regulatory system for cryptocurrencies to protect consumers, prevent money laundering and improve transparency.

Image Source: “Flickr”

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