South Korean regulator – Financial Services Commission – stated that South Korea definitely has no regulation that would be a guideline for the banks regarding virtual account services to local crypto trading platforms.
The chairman of the Commission Choi Jong-Ku believes that if the crypto exchange fulfils all security, AML and KYC requirements, it may have the right to get services in country's banking institutions.
It is worth mentioning that crypto-to-fiat trading in South Korea requires virtual bank accounts via which users can either deposit or withdraw the won. At the same time, the virtual accounts must be verified with the real information of traders, which were used for registration on the particular platform.
Earlier, the local court in the Central Seoul determined that unilateral cancellation of the cooperation Nonghyup bank and exchange Coinis made by the former was illegal. As the platform spokesperson stated, crypto exchanges have the right for deposit/withdrawal operations in the local banks by default and thus any unexpected cancellation of the contract by the bank without providing strong reasons for such move must be considered as a violation of the agreement.
This decision of the Financial Services Commission was welcomed by the crypto market players, in partciular, South Korea-based exchanges that are members of the South Korea Blockchain Association.