The Korean Blockchain Association (KBA) has recently revealed a self-regulatory framework for its member cryptocurrency exchanges to boost trading transparency, The Korea Times reports on Tuesday, April 17.
The framework, announced by KBA executive Jeon Ha-jin during a press conference at the Korea Federation of Small and Medium Business (SME) in Seoul, comprises general measures to protect customers by optimizing the transparency of operations at crypto exchanges, as well as to prevent money laundering, insider trading, and other illegal activities.
According to The Korea Times, the introduced framework consists of five general requirements, including managing clients’ coins separately from their own, holding a minimum equity of 2 bln won ($1.8 mln), and publishing regular audit and finance reports.
The KBA will examine its 14 member crypto exchanges for compliance with the set out rules, including Bithumb, Upbit and OKCoin and other members starting May 1, The Korea Times reports.
The KBA first started considering the development of a self-regulatory framework for local cryptocurrency exchanges in February of this year, in order to alleviate concerns over the country’s “Bitcoin frenzy” in December 2017.
Last week, South Korean regulatory body the Financial Services Commission (FSC) announced it would inspect three domestic banks that provide services to cryptocurrency exchanges, in order to check compliance with the country’s latest anti-anonymity regulations.