Korean banks tighten requirements for cryptocurrency exchanges on FATF guidelines

Posted 30 July, 2019

South Korea's banks are reportedly tightening rules for cryptocurrency trading platforms. The move is said to be related to the new regulatory guideline by the Financial Action Task Force.

It was reported that four Korean cryptocurrency exchanges (Bithumb, Coinone, Korbit and Upbit) will have to launch advanced anti-money laundering measures if they want to extend their banking accounts.

Banks used to renew the valid period for accounts of cryptocurrency platforms easily. For now, the authority released new guideline making banks responsible for money laundering issue. As a result, the latter in their turn decided to expand requirements for crypto trading platforms beginning from July.

It has been said that if banks follow FATF standards, small- and medium-sized exchanges can not but leave the cryptocurrency market in South Korea.

The previous tightening suggested that local crypto exchanges have to cover losses of their clients even in case of the damage caused without any default on platforms' part.

It was reported earlier that the top-2 bank in the country Shinhan Bank expressed intentions to consider specific measures aimed at monitoring cryptocurrency accounts. One of the measures will be the analysis of incoming and outcoming transactions at the subject accounts.

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