Leading cryptocurrency exchanges in South Korea have entered into agreements with Korean banks to continue issuing real-name accounts, media reports revealed. The deals, even if they are not yet permanent, will allow trading platforms to register with the tax authorities before the September 24 compliance deadline.
Bithumb, Coinone and Korbit have partnerships with Korean banks
Banks have reportedly agreed to continue issuing real name accounts for South Korea’s leading digital asset exchanges. The agreements have yet to be finalized, but the confirmations received will allow the coin trading platforms to complete their registration with the country’s tax authorities before the regulatory deadline expires at the end of this month.
On Wednesday, a spokesman for Nonghyup Bank announced that the institution had agreed to renew deals to issue real-name accounts to traders at Bithumb and Coinone. According to a report by Korea Jongang Daily, the agent confirmed that the bank will provide exchanges with the documents required to conclude their contracts.
The current agreements with the two crypto platforms are expected to expire on September 24th, when stricter new regulations are enforced for the industry in March. While previous contracts were renewed every six months, this time the bank declined to disclose the terms of the latest contracts, according to the English-language edition of Joongang Ilbo.
In a similar move, Shinhan Bank announced that it would continue to issue real name accounts to Korbit, another leading Korean exchange. However, the bank noted that the confirmation does not mean that the contract with the crypto company was officially renewed. The document was served to allow the exchange to continue its registration process, a spokesman said, adding:
Whether we will extend the partnership will be announced before the deadline on September 24th, but we are postponing that until later for the time being.
According to the Korean daily, the statement suggests the bank plans to eventually renew its partnership with Korbit, but it will likely wait for the exchange files for registration with the Financial Services Commission (FSC). The publication cites another source as saying that the final announcement will likely be “last minute”. The current agreement expires after September 24th.
Korea’s four largest crypto exchanges are poised to continue their business under stricter rules
Obtaining registration with the Korean Financial Intelligence Unit (FIU), an anti-money laundering agency under the FSC, is a key requirement for the country’s updated crypto regulations. In order to register, Korean exchanges must not only partner with a bank to implement the real name account system, but also obtain an Information Security Management System (ISMS) certificate from the Korea Internet and Security Agency.
The country’s four leading crypto trading platforms have now managed to meet both conditions. Upbit, the largest by trading volume, filed for registration last month. The Korean online bank K Bank provides real-name accounts for the platform. However, the entire registration process can take up to three months. During that time, the financial regulators will review the filing and approve the application, the FSC noted earlier this week.
In addition to Upbit, Bithumb, Coinone and Korbit, 17 other exchanges have also received ISMS certification, according to a report by the daily Chosun Ilbo. However, smaller crypto trading venues are struggling to convince Korean banks to provide them with the services they need under the revised Special Fund Act. 59 Exchanges have yet to meet the requirement and may need to close after the stricter rules come into effect.
Do you expect more Korean crypto exchanges to meet the new regulatory requirements by September 24th? Let us know in the comments section below.
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