The finance minister in Korea has given the go-ahead for banks to be able to work with different crypto exchanges. The commissioner of Finacial Services in South Korea, Choi Jong-Ku has confirmed that there are no current problems relating to compliance and security in the process for banks providing digital bank accounts to the local virtual currency exchanges. At the state affairs audit administers by the government of the country to oversee the progress of all government agencies and commissioners in the nation, Choi made clear that as long as digital currency trading platforms are well equipped with anti-money laundering and know your customer systems then digital asset platform should be able to obtain banking service from South Koreas commercial financial institutions.Speaking on the matter, Choi stated:
“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.”
Crypto exchanges in South Korea employ a singular system called virtual bank accounts which lets users deposit and withdraw the South Korean currency (won) in an instant so that users can hold their finance on exchanges in a secure manner. An optimistic futureEarlier in the year, the South Korean government encourage banks to prevent working with digital currency exchanges to eliminate the possibility of laundering money using virtual assets. As put by CCN,
“While Nonghyup, a major commercial bank in South Korea that has worked with crypto exchanges for over a year, continued to provide services to local exchanges, in mid-2018, even Nonghyup was pressured to end its services to Bithumb and other major cryptocurrency exchanges.”
In a public statement released by the finance minister, Choi clarified the stance of the government and local financial authorities towards digital currencies exchange and in the year to come, local digital asset trading platform will no longer suffer from the lack of banking services from big organisations related to finance in the country. The blockchain association in South Korea represents small and medium-sized exchanges in the local market has expressed its optimistic outlook towards to FSC and included that the initial problem related to KYC and AML introduced by the firm almost a year ago have now been resolved. What are your thoughts? Let us know what you think down in the comments below!