Thursday, July 29, 2021
Home50 Korean crypto firms apply for new licenses as strict regulation looms

50 Korean crypto firms apply for new licenses as strict regulation looms

Fifty crypto companies based mostly in South Korea have applied for a license underneath the brand new Data Safety Administration System (ISMS), a government-backed certification that certifies corporations that meet stringent requirements of information safety and privateness.

Crypto rules are coming

The regulation takes impact in September 2021 and is without doubt one of the first certifications for crypto companies in Korea. The nation enjoys one of many largest crypto buying and selling populations on the planet, with numerous younger adults making an attempt their luck within the crypto markets.

Nevertheless, with the area being notorious for its non-regulated nature and the seemingly unending quantity of scams, the Korean authorities has launched or is planning to introduce, plenty of legal guidelines to raised regulate the native crypto scene.

The ISMS is certainly one of these. As per a launch, the certificates assesses companies over numerous criterias—equivalent to total threat administration, entry management, server and safety administration, and others—to stop untoward incidents and lapses that will price Koreans a good bit of losses.

And exchanges aren’t shying away from getting licensed both. 20 native exchanges have already obtained the ISMS certificates (together with UpBit and Kobit), whereas 30 others have utilized and are within the wait traces. Of the latter, eight purposes are mentioned to be at the moment getting revised and processed.

Subsequent steps

The licensed exchanges—and others that get licensed at a later date—are actually purported to cooperate with native banks to offer details about crypto customers and all transactions are performed (from fiat) performed through their accounts. 

This step is alleged to be a safety measure for doable embezzlement and cash laundering.

In the meantime, Korean exchanges have began to delist altcoins that put them within the uncertain class forward of the rules.

Tickers like MARO, PCI, QTCON, and SOLVE confronted the hammer on some exchanges final week, with some comparatively greater names like BZRX getting delisted too. As a result of when the authorities come knocking, nothing is decentralized anymore.

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