Korean Banks Will Work With Crypto Exchanges

Dawid Paluch
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Choi Jong-Ku, the head of the Financial Services Commission (FSC) of South Korea, has approved banks working with cryptocurrency exchanges. He said that there are no security issues in the cooperation between banks and exchanges.

 

The FSC is the most important financial organization in South Korea. In recent weeks, the commission has claimed that ICO ban still remains. The financial watchdog has also warned crypto investors about possibly violating the Capital Market Act.

 

No problem with crypto exchanges

Choi Jong-Ku said that the commission doesn’t have any issues in the process of banks providing virtual bank accounts to local crypto exchanges. He said:

 

“There exists no issue in banks providing virtual bank accounts to cryptocurrency exchanges. If digital asset trading platforms have KYC and AML systems in place, there is no problem in issuing virtual bank accounts to exchanges.”

 

The government of South Korea has conducted an audit to evaluate the progress of all authority agencies and commissioners. At the audit, the head of FSC pointed out that as long as trading platforms abide Know Your Customer (KYC) and Anti-Money Laundering (AML) systems, there won’t be any objections from the country’s financial institutions.

 

Positive feedback from investors

Crypto exchanges in South Korea have created a special system called virtual banks account. This system enables users to deposit and withdraw won (South Korean currency) immediately.

Earlier this year, the Korean government encouraged banks to stop working with crypto exchanges due to possible money laundering.

This public statement clarifies the authority stance on the cooperation between banks and virtual trading platforms.

South Korea Blockchain Association (SKBA), an organization representing all crypto exchanges, stated that the initial problem with KYC and AML have been solved. The association expressed its optimism towards the FSC stance.

According to the SKBA, Korean crypto exchange market will rise quickly from now on.

 

Image by Vincent St. Thomas / shutterstock.com

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