The CEO of 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 survive the new ordinance.
Smaller businesses are unlikely to comply with new banking and anti-money laundering protocols in time
During an interview with Hanguk HyungjaeHas Heo Baek-young made an apocalyptic prediction for the local crypto companies. He believes that smaller companies could “struggle” to meet the Information Security Management System (ISMS) certification requirements.
In South Korea, nearly 50 crypto exchanges are active at the time of writing. Upcoming regulations will become effective in March, but companies were given a six-month grace period to comply with required measures.
The amended law on special information on financial transactions was approved by the Finance Committee of the National Assembly in November last year.
Within the framework, crypto exchanges are required to follow a series of banking protocols, including linking customer accounts to individuals and their bank accounts verified by a local identification document.
Bithumb’s boss praised the new rules and believes his company is ready to meet all requirements within the specified deadlines. Heo pointed out the importance of distinguishing ‘companies with bad intentions’. He said:
It is late to strengthen investor protection, but it is in the right direction.
However, he still thinks that many other platforms could struggle to comply with new anti-money laundering (AML) protocols.
Is anonymous crypto trading coming to an end in South Korea?
The new rules also cite the Financial Intelligence Unit (FIU) as the regulatory watchdog to monitor the South Korean crypto industry, which is also seeking to end anonymity in crypto trading.
Today, Upbit, Korbit and Coinone are considered to be major crypto exchanges in the country. Experts to believe these companies can meet the requirements of the new regulations.
The South Korean government arrived on January 8 issued a change to introduce a tax on the profits of cryptocurrency trading. It will take 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 manager? Let us know in the comments below.
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