The need for regulation of cryptocurrency exchanges in South Korea is growing as banks continue to refuse to open a virtual account in accordance with the new rules for most kryptomere. Association of Korean Blockchain exchanges Association began developing standards of self-regulation of the cryptocurrency industry. 33 exchanges were proposed to be tested in the framework of the process – 23 courts agreed, and 10 refused.
According to the Seoul Finance, Jeong Jae-Jin (Jeon Jae-jin), the Chairman of the Committee on self-regulation of the Association, said:
«We will focus on the establishment of safety rules and transparency for exchanges. The Association believes that self-regulation will be smooth».
The article also notes that 33 exchanges it was proposed to pass the inspection for developing rules of self-regulation. Twenty-three of them agreed, and the remaining ten refused and was expelled from the Association. Among them were exchange Coinnest, whose CEO was recently arrested.
According to the publication, on the proposal of the Association agreed the following sites: Glosfer, Nexcoin, Neoframe, Upbit, Bithumb, Gopax, Coinlink, Scoin, Okcoin Korea, Whalex, Zeniex, Kairex, Kcx Exchange, Komid, Korbit, Coinone, Coinzest , Coinplug, Crypto Company, Dexko, Korea Encryption, Money Exchange and Huobi Korea.
Representatives of the Association said that cooperating with law offices to develop standards for kryptomere, reports Zdnet Korea. The Association plans to issue rules in the near future. Also the representatives of the organization said that the development of rules is in accordance with the standards and requirements of the financial regulator of the country. Exchanges which agreed to the test, «will be screened for compliance with the Association rules, which relate to security procedures listing of capital and protection of investors.»
After the start of operation of the system of real names, January 30, anonymous cryptocurrency trading in the country was discontinued. However, not all exchanges were able to achieve from banks account conversion in accordance with the new rules that has become a real problem for more than 20 exchanges.
«Exchanges believe that the inspections with the aim of self-regulation can prove the stability of their work», — says the publication Seoul Finance.
The results of inspections by the Association will be announced at the end of this month. Subject to the requirements of self-regulation Association and the affiliated exchange’s plan to make the banks request the release of a new virtual accounts for small and medium exchanges, says the publication.