The number of cryptocurrency exchanges participating in self-regulation has nearly doubled in South Korea. The crypto self-regulation efforts are led by the Korean Blockchain Association which has recently launched with 66 members. The association also plans to develop standard price indices for the main cryptocurrencies.
Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies
25 Crypto Exchanges to Self-Regulate
The Korean Blockchain Association has been leading the cryptocurrency self-regulation efforts in South Korea. The group formally launched on January 26 with 66 members, local media reported. Among its members are 25 crypto exchanges including all of the country’s major platforms such as Upbit, Bithumb, Korbit, Coinone, and Coinplug.
An inaugural ceremony for the launch was held at the Yeouido National Assembly Hall in Seoul. It was attended by 58 out of 66 member companies along with Min Byung-Doo, a member of the Democratic Party, and Kim Sung-tae, a member of the Free Korean Party, Inews24 reported.
Former South Korean Minister of Information and Communication, Chin Dae-jae, became the first chairman of the association. Top Star News quoted him saying, “The public interest in cryptocurrencies represented by bitcoin has soared, and the excessive speculative funding has flowed into exchanges. It’s our reality now.” He emphasized, “The association wants to be an effective communication channel between the government and the industry.”
During the first half of the year, the association “plans to create an information system that allows the public to easily understand virtual currency,” Chosun detailed, adding that:
The association also plans to develop a standard index of key virtual currency prices and transaction data…The intention is to provide credible information as standard transaction data.
The Korean Blockchain Association’s launch event.
Self-Regulation for Korean Exchanges
Prior to its official launch, the association initially announced self-regulatory measures in December, at the suggestion of the regulators and in consultation with the banking sector. Fourteen cryptocurrency exchanges jointly declared self-regulation at that time, including all major crypto exchanges in the country except Upbit, as news.Bitcoin.com previously reported. The Kakao-backed exchange, which has grown to be one of South Korea’s largest exchanges, joined the association and declared self-regulation in January.
The association has established a self-regulatory committee to work with cryptocurrency exchanges. Chin was then quoted by Chosun:
I will launch a self-regulation review in the first half of the year.
He further noted, “We will study the Japanese regulatory framework and make sure that the entire ecosystem is stable.” In addition, he elaborated, “I will also take the initiative to create an environment where investors can learn how to use virtual currency,” Maekyung reported.
According to the Hankyoreh, the association’s self-regulatory measures will “include minimum operating requirements such as the capital base of virtual currency exchanges, employee ethics regulations, and consumer protection.”
What do you think of Korean crypto exchanges declaring self-regulation? Let us know in the comments section below.
Images courtesy of Shutterstock, Yonhap, and the Korean Blockchain Association.
Need to calculate your bitcoin holdings? Check our tools section.