Bitcoin exchange Upbit is the first in South Korea to receive regulatory approval
The Upbit platform became the first cryptocurrency exchange in South Korea to receive Financial Services Commission (FSC) approval. CoinDesk Korea writes about this with reference to the regulator.
The FSC Financial Intelligence Unit (FIU) has reportedly reviewed the business report of Dunama Co., Ltd, which is the operator of Upbit. Following the review, the agency recognized the platform as compliant FATF…
On August 20, the operator Upbit was one of the first to send a report to the FIU in accordance with the law “On special payments”. K-Bank, cooperating with the crypto exchange, in turn, confirmed that the company uses accounts registered in real usernames to identify customers.
So far, only six companies have submitted to the FIU the documents required to continue their digital asset-related activities. The latter were Korea Digital Exchange (operator Flybit) and the Korea Digital Asset platform owned by KB Kookmin Bank.
By September 24, 2021, South Korean bitcoin exchanges must register with the FSC. To do this, they need to comply with the requirements of the department, including ensuring that procedures are followed KYC together with partner banks. The latter are reluctant to expand cooperation with trading platforms, fearing additional attention from financial regulators.
According to the Financial Times, in a week, 40 of the approximately 60 cryptocurrency exchange operators in the country will cease operations due to non-compliance with FSC standards. They are required to notify customers of a possible closure no later than September 17th.
At least two platforms have already taken such a step – Gopax, Bybit and Binance. The former stated that it is currently in talks with an unnamed financial institution to “create a verification account for deposits and withdrawals on its real behalf.” The second and third announced the closure of operations with the South Korean won.
We will remind, the ruling Democratic Party of Toburo in South Korea has proposed to pass a law that will postpone the introduction of capital gains tax on operations with cryptocurrencies for a year.
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Text source: MCC.EXCHANGE
