The majority of South Korean cryptocurrency exchanges are implementing new self-regulatory rules and performing self-inspection. The industry group in charge of leading the efforts has clarified the differences between the new and old self-regulatory rules for its 23 exchange members.
The Korean Blockchain Association, known for its efforts to spearhead self-regulation among the country’s cryptocurrency exchanges, has unveiled and clarified its self-regulatory rules.
In an interview with Asia Economic TV on Tuesday, Jeon Ha-jin, chairman of the association’s self-regulatory committee, explained how the group and its exchange members are in the process of implementing self-regulation, adding that in the future:
The role and responsibility of the blockchain association will be significant until a safe and sound cryptocurrency trading culture is formed.
The rules were unveiled at a press conference last week by the association and 14 of its exchange members in an effort to “boost transparency of deals and head off money laundering, insider trading and other illegal deals,” the Korea Times reported.
Specifically, the rules suggest that crypto exchanges “(1) manage clients’ digital coins and their own separately (2) cope with abnormal transactions quickly (3) list new crypto with enhanced client protection system (4) hold a minimum equity of 2 billion won [~US$1.85 million] and (5) publish regular audit and finance reports,” the news outlet conveyed, adding:
The association will inspect the system of the 14 exchanges and nine newcomers to see if their systems meet the rules. But the inspection could have a limited impact because the rules are not legally binding.
Inspections will start on May 1 and the association will look into the exchanges’ systems “to check if there are loopholes that could be used for insider trading, price rigging and money laundering,” the publication detailed. “Members are supposed to submit self-inspection reports to the association by May 8.”