South Korea’s regulators are ready to implement new measures in the recent wave of restriction tightening in the country, banks, and transactions with crypto-monetary exchange businesses.
The new guidelines announced by the Financial Services Commission (FSC) of financial regulators would affect some 60 unlicensed exchanges in the country and obliging banks, in their dealings with this industry, to consider digital currency exchanges “high risk” clients.
According to local press sources, the measures are being implemented to improve transaction monitoring in the sector and encourage exchanges to comply with the full breadth of user ID requirements.
Only four major South Korean exchanges have generated real-name accounts, which banks have now cleared. According to the Financial Services Commission, customer demand is driving stricter restrictions, with consumers clamoring for better protection for assets kept on other exchanges in the country.
In South Korea, exchanges are already under pressure, with a September deadline looming for applications for a new operating license—soon to be a must for any sale wishing to stay in business in the country.
After that, regulators will conduct a month-long evaluation of trading behavior at exchanges before determining whether to award the license, which will focus on avoiding the use of fraudulent or pseudonymous accounts in transacting through their platforms.
Banks will also be expected to be more stringent with ID verification and other compliance checks and report any questionable behavior to the authorities.
The actions are part of a wider strengthening of industry limitations in South Korea, one of the major digital currency markets of the area.