Korea’s Finance Minister approves banks to work with crypto
In another major move in the crypto industry, Choi Jong-Ku, the commissioner of the Financial Services Commission (FSC) of South Korea, has stated that there are no issues for banks to work with cryptocurrency exchanges, as long as the regulatory basics are being followed. Among those are the standard banking practices of having Know Your Customer (KYC) and Anti-Money Laundering (AML) systems in place.
South Korea, along with Japan, have been on the front lines in the merging of the traditional banking industry with crypto exchanges. Japan has recently approved a self-regulation industry body for establishing guidelines for the cryptocurrency industry, and South Korea employs a unique system of virtual bank accounts that enable users to deposit and withdraw the South Korean won (KRW) instantly, allowing to store it on exchanges securely.
The public statement from the commissioner Jong-Ku has encouraged crypto traders and investors, reassuring that the issues of the lack of banking services provided by major financial institutions for the cryptocurrency market will be resolved for the years to come. South Korea’s Blockchain Association has also confirmed that the issues related to KYC and AML systems addressed by FSC 10 months ago have been now completely resolved.
Additionally, the country’s largest cryptocurrency exchanges have also initiated the process of obtaining insurance to protect investor funds. According to South Korea’s Ministry of Science and IT, the largest crypto exchanges have successfully established solid security and internal management systems. The move is expected to drive even more growth to South Korea’s crypto market and its areas of influence, financial experts say.