The CEO of the South Korean cryptocurrency exchange Bithumb has made some predictions about the upcoming new rules governing the national industry. In fact, the executive believes that only four to seven exchanges will survive the new regulation.
Companies Less Likely To Meet New Banking Protocols, Anti-Money Laundering On Time
During an interview with Hanguk Hyungjae, Heo Baek-young made an apocalyptic outlook for the local crypto companies. It believes that smaller companies may “struggle” to meet the requirements of ISMS certification.
In South Korea, nearly 50 crypto exchanges are in operation as of press time. The regulations due to come into force come March, but companies have been given a six-month grace period to carry out the required measures.
The revised Special Financial Transaction Information Act was approved by the National Assembly’s finance committee in November last year.
Under the framework, crypto exchanges are required to follow a series of banking protocols, including linking customer accounts to individuals and their bank accounts that are verified by a local identification document.
The boss of Bithumb praised the new rules and believes his company is ready to meet all requirements by the deadlines. Heo highlighted the importance of differentiating from “companies with bad intentions.” He said:
It’s late to strengthen investor protection, but it’s the right direction.
However, he still thinks many other platforms might find it difficult to adhere to new anti-money laundering (AML) protocols.
Is Anonymous Crypto Trading Closing in South Korea?
The new rules also name the Financial Intelligence Unit (FIU) as the regulatory watchdog to oversee South Korea’s crypto industry, which is also seeking to end the anonymity in crypto trading.
These days, Upbit, Korbit, and Coinone are considered major crypto exchanges in the country. Experts believe these companies can comply with the requirements set by the new regulations.
On January 8, the South Korean government announced an amendment to introduce a tax on cryptocurrency trading profits. It will be enacted in February, and profits from buying and selling cryptos in South Korea will be taxed at 20% starting in 2022.
What do you think of the words of the Bithumb executive? Let us know in the comments section below.
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