The CEO of the South Korean cryptocurrency exchange Bithumb has made some predictions regarding the upcoming new rules for the national industry. In fact, the executive believes there will only be between four and seven exchanges that will survive the new regulation.
Smaller businesses are unlikely to comply with new anti-banking and money laundering protocols in a timely manner
During an interview with Hanguk HyungjaeHeo Baek-young made an apocalyptic forecast for the local crypto companies. He believes that smaller businesses may have “difficulty” meeting the information security management system (ISMS) certification requirements.
Almost 50 crypto exchanges are in operation in South Korea as of press time. Upcoming regulations will be become effective However, in March, companies were given a six-month grace period to take the necessary steps.
The amended Law on Special Information on Financial Transactions was approved by the National Assembly’s Finance Committee last November.
As part of the framework, crypto exchanges are required to follow a number of banking protocols, including linking customer accounts to individuals and their bank accounts, which are verified by a local identification document.
Bithumb’s boss praised the new rules and believes his company is ready to meet all requirements on time. Heo pointed out the importance of differentiating yourself from “companies with bad intentions”. He said:
It is late to step up investor protection, but it is the right direction.
However, he still believes that many other platforms may struggle to comply with the new anti-money laundering (AML) protocols.
Is anonymous crypto trading coming to an end in South Korea?
The new rules also designate the Financial Intelligence Unit (FIU) as the supervisory authority for overseeing the South Korean crypto industry, which is also trying to end anonymity in crypto trading.
Nowadays, Upbit, Korbit, and Coinone are considered major crypto exchanges in the country. Experts | believe These companies are able to meet the requirements of the new regulations.
On January 8, the South Korean government published an amendment to introduce a tax on profits from trading in cryptocurrencies. It will go into effect in February and profits from buying and selling cryptos in South Korea will be taxed at 20% from 2022.
What do you think of the words of the Bithumb executive? Let us know in the comments below.
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