South Korean regulator tells banks to open books on cryptocurrency exchanges

The local government reported on Wednesday that the financial regulator of the South Korean authorities has asked banks to provide information on transactions with cryptocurrency companies as the authorities are trying to determine how many cryptocurrency exchanges there are in the country.

An unnamed regulator has asked banks to disclose corporate accounts of cryptocurrency exchanges that have not yet implemented real-name accounts for their cryptocurrency customers. So far, only the four largest exchanges in South Korea have established real-name accounts, and the rest are still in operation.

“Currently, cryptocurrency exchanges do not require government permission to operate, which is why it is difficult to determine the exact number of cryptocurrency exchanges. One method of discovery is to track the bank accounts of companies that collect customer funds,” an anonymous transaction official Explain to The Korean Herald.

Estimates indicate that there are still 100-200 cryptocurrency exchanges that are not within the jurisdiction of the government. Any company that has not registered its activities by September 24 may violate the revised “Reporting and Use of Specific Financial Transaction Information Act” and may face up to five years in prison.

The revised law will require cryptocurrency exchanges to establish appropriate security management systems, establish transparent partnerships with local banks, and submit reports to government authorities.