Skip to content

Home  About  Disclaimer  Privacy  Editorial  Advertise

Menu
  • Home
  • Artificial Intelligence Trading
  • Brokers
  • Exchanges
  • Blockchain
  • Guides
  • Sitemap
  • Contact
Menu

Crypto Exchanges in South Korea Prepares for Tighter Reserves Requirements

Posted on August 29, 2023

Beginning next month, crypto exchanges with ‘real-name’ bank accounts in South Korea should maintain a reserve fund with a minimum of $2.3 million. 

Via a strategy meant to enhance client protections, crypto exchanges in South Korea must put aside a minimum of 3 billion won (an estimated 2.3 million dollars) in bank accounts as a safeguard. These new requirements apply to exchanges that have been provided accounts from real-name local banks.

Further, they will be implemented from September in line with the updated guidelines for virtual asset operators published by the Korean Federation of Banks (KFB) in July this year. 

AI Trading

In this context, real-name accounts are the KYC’d clients with a similar name at the bank as the exchange. The guidelines show that the 3 billion won minimum of the needed cash reserves conforms to 3 billion won and higher or 30 percent of the crypto exchange’s everyday average deposits. Further, the reserves will have a cap of 20 billion won. 

Crypto Exchanges with High Trading Volumes Restate Compliance to New Measures

Despite these new measures meaning additional expenses, major crypto exchanges in South Korea with high trading volumes, for instance, Bithumb and Upbit, should not encounter considerable challenges as they implement new measures.

Upbit, the country’s biggest crypto exchange, divulged to local media via its representatives that it would faithfully enforce the new rules. Further, Bithumb claimed it was getting ready for the new regime without a snag.

Nevertheless, smaller trading networks, particularly those running on coin-only markets or those lacking crypto-to-fiat pairs, may experience challenges with the new requirements. The exchanges lack bank accounts and do not need to amass reserves.

However, some of them chose to hold talks with banks to open such accounts to ensure survival in the market. Besides, it is also mandatory to adhere to the Specific Financial Information Act introduced in 2021.

AI Trading

Crypto Exchanges Vow to Overcome Illicit Financing 

This specific act governs the reporting and utilization of defined financial transaction data to avert terrorist financing and money laundering. This reduced trading volumes as traders shifted to more prominent exchanges with improved compliance guidelines.

An example of such an exchange is Hanbitco, which allegedly acquired a bank account recently. However, an unidentified representative in the virtual asset industry revealed to the local media that this might be the final Straub before the regulations’ implementation next month. 

The Korean Federation of Banks included numerous other standards in its operating rules, for instance, enhanced customer authentication (KYC) that will come into effect in January next year. 

The new guidelines will compel local companies that provide or possess cryptocurrencies to reveal a range of data, for instance, business models, the amount and features of their crypto tokens, and internal accounting rules regarding cryptocurrency sales and related profits.


SureTradeGroup.com is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Some of the content on this site is paid content that is not written or posted by our writers or editors and the opinions expressed do not reflect the opinions of this website. Any disagreement you may have with brands or companies mentioned in articles will need to be taken care of directly with those specific brands and companies. The responsibility of anyone who may click links in our articles and ultimately sign up for that product or service is their own. Forex, Stocks, Cryptocurrencies, NFTs and Dogital Tokens are all a high-risk asset, investing in them can lead to losses. Readers should do their own research before taking any action.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Try The #1 Artificial Intelligence Trading System For Free

Looking for something?

Crypto Prices

Name Price24H (%)
bitcoin
Bitcoin (BTC)
$26,217.00
-1.39%
ethereum
Ethereum (ETH)
$1,579.48
-0.91%
tether
Tether (USDT)
$1.00
0.07%
binancecoin
BNB (BNB)
$208.75
-0.84%
ripple
XRP (XRP)
$0.50
-1.41%
usd-coin
USDC (USDC)
$1.00
-0.03%
dogecoin
Dogecoin (DOGE)
$0.060963
-1.04%
cardano
Cardano (ADA)
$0.244512
-0.22%
solana
Solana (SOL)
$19.45
-0.89%
binance-usd
Binance USD (BUSD)
$1.00
-0.03%

Recent Posts

  • Full Swe-CSM Review (4.3 out of 5) A Step-by-Step Evaluation of SweCSM (swe-csm.com)
  • Tim Draper Launches a Crypto Venture Capital Company Despite Regulatory Uncertainty in US
  • Who is Vitalik Buterin? – Everything You Need to Know About the Ethereum Creator
  • FTX Seeks $157 Million Against Hong Kong Affiliate Ex-Employees
  • Rollbit Coin Falls 5% as Influencer Gainzy Switches Sponsorship to Stake
  • PayPal Avails PYUSD Stablecoin to Venmo Payment Application
  • Senator Warren’s Crypto Anti-Money Laundering Bill Gets Nine New Supporters
  • Three Celebrities Settle Suits Over Their Involvement With FTX
  • Animoca Brands’ Darewise Set to Launch a Metaverse Token via Ordinals
  • Full Binance Review (4 out of 5) A Step-by-Step Evaluation of the Broker
  • Full Capital.com Review (3.5 out of 5) A Step-by-Step Evaluation of the Broker
  • Crypto Exchange JPEX Receives Hong Kong Regulator’s License Warning 
  • Introducing John J. Ray III: All You Need to Know About the New FTX CEO
  • A Step-by-Step Guide to Buying and Selling Cryptocurrencies on Robinhood
  • Full Kraken Review (3.9 out of 5) A Step-by-Step Evaluation of the Broker
  • Full Blue Stars FX Review (4.3 out of 5) A Step-by-Step Evaluation of BlueStarsFX (bluestarsfx.com)

Invest in Crypto

  • Binance
  • Capital.com
  • Eightcap
  • Invast Global
  • Kraken
  • Synergy FX
  • Coincheck
  • Gemini
  • FTX
  • Coinbase
  • Gate.io
  • KuCoin
  • Bitfinex
  • Huobi Global
  • Bybit
  • Bitstamp
  • OKX
  • MEXC
  • Phemex
  • Bithumb
  • LBank
  • Upbit
  • Bittrex
©2023 Sure Trade Group | Design: Newspaperly WordPress Theme