Implementation Of New Self-Regulatory Rules In South Korea!
Most of the South Korean cryptocurrency exchanges are now implementing new self-regulatory rules. Also, they are now performing self-inspection for these rules. The industry group in charge of the country has elucidated the differences between the old and the new rules to the 23 exchange members.
The Korean Blockchain Association has unveiled and clarified the new self-regulatory rules for the crypto exchanges. The Association is well-known for its efforts to lead the self-regulation among the cryptocurrency exchanges of the country.
Jeon Ha-jin, the Chairman of the Association’s self-regulatory committee, explained the entire concept in an interview with Asia Economic on Tuesday. He explained how the group and its exchange members are now in the process of implementation of self-regulation. Further, he added
The role and responsibility of the Blockchain Association will be noteworthy. This is until a safe and sound cryptocurrency trading culture is established in the country.
The Korean Times reported that the blockchain association unveiled the new rules at a press conference held on last week. 14 of the exchange members of the association are making efforts to enhance the crypto trading of the country. They are focussing on to boost transparency of deals and prevent money laundering in case of trading and other illegal deals.
Some Specific Rules!
Some of the rules specifically suggest the following remarks for crypto exchanges:
Manage digital coins of the clients and their own separately.
Cope up with all the abnormal transactions taking place in the exchanges as quickly as possible.
List down new crypto exchanges and platforms with enhanced client protection system.
Hold a minimum equity of 2 billion won ($ 1.85 million).
Publish regular audits and finance reports.
Furthermore, the news outlet added that the association would start the inspection from 1 May 2018. The inspection would be done by nine newcomers who will be seeing if the systems meet the rules. Consequently, the loopholes for insider trading, price rigging and money laundering will be inspected. Additionally, the publication mentioned that the members are supposed to submit the self-inspection reports to the Association by 8 May.