A banking association in South Korea recently stepped up regulatory discussions across the country and raised concerns about the high volume of altcoin trading. The Korean Banking Association (KFB) asked its members to check the trading volume via the altcoin activities of the customers of their crypto exchanges.
Altcoins trading volume surpassed Bitcoin last weekend in South Korea
According to The Korea HeraldKFB is concerned about possible risks South Korean banks could face given the high volume of altcoin trading as they offer their services to domestic virtual currency exchanges.
The warning comes after a significant increase in the transaction volume to around 95% for Altcoins, said the media channel.
A Korean Federation of Banks official commented on the matter as follows:
One of the criteria we recommend is the security of digital assets, which can be measured by the number of digital coins on an exchange. When an exchange trades too many digital assets, it takes more risks.
During 24 hours last Saturday Bitcoin (BTC) The volume of the domestic exchange upbit was only 4.26%.
However, the banking association calls on the local banks to tighten the existing rules for monitoring suspicious transactions via the cryptocurrency exchanges and to report them in accordance with the revised “Law on the reporting and use of specified financial transaction information”.
Harsh tone from South Korean regulators for cryptos
Overall, the plethora of news about crypto regulation in South Korea keeps making headlines as the aforementioned ruling is underway.
In fact, the chairman of South Korea’s top financial regulator, the Financial Services Commission (FSC), Eun Sung-soo recently warned that all digital asset exchanges in the country could be closed. But his harsh rhetoric about the industry was not well received by the domestic crypto community.
As Bitcoin.com News reported on April 28, 2021, thousands of petitions are now being filed on the South Korean president’s website by angry people aged 20 to 39 to seek Eun’s resignation.
At the time of going to press, South Korea has around 200 virtual currency exchanges.
What do you think of the South Korean Banking Association’s warning? Let us know in the comments below.
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