Guidelines For Banks Prior Evaluating Cryptocurrency Exchanges - South Korea.
2021-06-21 | Eddy Morgan
![Guidelines For Banks Prior Evaluating Cryptocurrency Exchanges - South Korea.]()
Earlier on 2
nd May, the KFB [Korea Federation of Banks] published
a group of “
guidelines” for banks to follow when evaluating cryptocurrency exchanges.
The rules mostly concern exchanges’ security protocols, their susceptibility to hacks, the thoroughness of their user databases, and their standards for listing tokens. On the other hand, banks are also expected to review exchanges’ corporate structure
and therefore the transparency of their operations.
Although several industry insiders have come to assume that
the Big 4 will survive
the approaching regulatory
tsunami,
it's as if there
are no guarantees for even these major players.
Upbit,
the leading exchange operational within
South Korea by volume, recently delisted 24 tokens and removed the fiat on-ramps for
5 tokens. Many view this move as
an effort by Upbit
to get rid of any potential risk in its upcoming assessment by K Bank.
There is also speculation surrounding the potential impact of an ongoing fraud investigation
of one of Bithumb’s major shareholders.
Compared to other cryptocurrency exchanges, however,
the Big 4 have much less
to stress about. Presently, there
are no South Korean banks that have publicly expressed interest in forming any collaboration with a cryptocurrency
exchange outside of
the Big 4. Leaders of smaller exchanges have even implored the FSC to encourage banks to
a min of negotiating with them.
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