South Korean Banking Regulations Threatens ‘Big 4’ Crypto Exchanges

South Korea Plans to Begin Taxing Inherited or Gifted Crypto
  • AML and Banking regulations are a threat to the Big 4 crypto exchange.
  • More than 100 smaller exchanges are expected to close.
  • Due to AML protocol, Banks are unhappy.

Anti-money laundering(Aml) and banking regulations newly imposed by South Korea, causing tensions that have even left the big four domestic crypto exchanges to fear for their futures.

Anti-money laundering(AML)  refers to the policies and pieces of legislation which force financial institutions to monitor their clients to prevent money laundering. The main objective of AML is to deter criminals from feeding illegal funds into the financial system.

Furthermore, the new regulation that forces the cryptocurrency to check whether all their customers use real name. And social security number-authenticated bank accounts at domestic commercial banks came into force at the end of April, and after 6 months of the grace period. Moreover, this will become mandatory.

Moreover, Bithumb, Upbit, Korbit, and Coinone only these “big four” have real-name banking contracts in place along with a small group of foe exchanges hurrying to get their own contracts before the deadline. The remaining 100-200 smaller exchanges, expected to close.

Even more, the burden of ensuring AML protocol, banks are unhappy. Felt that the small commission received from the crypto transactions may not worth the risk involved with the whole process.

Accordingly, some of them may be starting to worry if they want to be involved in the crypto industry at all. Banking contracts that run for six months must be rollover upon expiry. However, The big four’s current bankers appear to be growing exhausted.

Exchanges are not overflowing with confidence either. The news agency quoted an unnamed employee at one of the “big four” exchanges as stating,

” It is difficult to predict the results as public opinion and policy stance on crypto assets are constantly changing. Other crypto exchanges are in the same position as us”

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A Project Engineer by profession, a writer by passion. Especially into the critics and skeptics on cryptocurrency. His fascination towards the crypto world and his personal experience on it has made him a writer with a taste.