Small and medium-sized exchanges in South Korea had a chance to express some of their grievances with the government during a recent meeting with financial regulators.
according to a report good By South Korean news outlet D.Street, the Financial Services Commission (FSC) called a closed-door meeting with 20 crypto exchanges on Thursday.
Insiders quoted by D.Street say that the closed-door session was a conversation between the FSC’s Financial Intelligence Unit (FIU) and 20 crypto exchanges where the former called for the government to implement its Virtual Asset Service Provider (VASP) report. wish was expressed.
Actually, on May 28, the FSC issued A release stated its intention to strengthen its surveillance of the crypto market to combat illegal activities. As part of the plan, crypto exchanges and other VASPs will be given a grace period of six months to register with the government.
This registration process includes obtaining Information Security Management System certification and opening real-name trading accounts. The 20 exchanges involved in Thursday’s meeting are the only ones out of 60 VASPs currently operating in South Korea.
However, only the “big four” – Bithumb, Upbit, Korbit and Coinone – have secured real-name trading accounts. In the meeting, another 16 exchanges expressed their difficulties in meeting the real name trading requirement among other operational difficulties.
FSC officials reportedly sympathized with the difficulties faced by smaller exchanges and promised not to interfere in their relations with South Korean banks. South Korean exchanges require banking partnerships to meet the real name trading requirement.
However, the cost of obtaining such banking participation is reportedly beyond the means of many smaller platforms. As previously reported by Cointelegraph, Upbit’s fee payment to K Bank was due in the first quarter of 2021. 10 times higher than the previous quarter.
Meanwhile, the government of South Korea has clarified roles and responsibilities of regulatory bodies regarding cryptocurrency regulations in the country.
South Korea’s crypto regulatory landscape has tightened in recent days with anti-money laundering and capital gains Tax policies among the new laws.