With the strict regulation from banks in South Korea, they are turning to self-regulation, with the Korean Blockchain Association preparing new regulatory standards, and 23 exchanges are now undergoing reviews.
They are preparing a self-regulatory review of the exchanges that are operating in the country, along with launching their own standards for self-regulation. The chairman, Jeon Jae-Jin said;
“We will focus on establishing the safety and transparency of the exchanges…The association predicted [that the] self regulatory review will be smooth.”
Although 33 exchanges were asked to undergo the review, only 23 agreed, but among them was Coinnest, whose CEO was recently arrested! They also revealed that they are working with a local law office to develop the standards. These are expected to be released in the next few weeks.
Already, 12 crypto exchanges were ordered to revise their consumer contracts, by the Korean Fair Trade Commission. The KFTC has gone on to provide some recommendations for the standards. Regarding the standards they have said that they should;
“…contain a wide range of disclaimers, restrictions on unauthorised deposits and withdrawals, restrictions on the arbitrary use of services, and corrective clauses on identity and password management”
Since the real name system was implemented at the end of January, small and medium crypto exchanges were unable to open any new virtual accounts. Instead, banks have only opted to open them for the largest, most popular crypto exchanges.
The association wrote;
“Since our affiliates actively cooperate in creating a healthy market, we expect [this action] to lead to new account issuance and market activation.”
The results of the crypto exchanges reviews are expected to be announced at the end of this month; however there are plans to request banks to issue new virtual accounts for the smaller crypto exchanges once again.