South Korean Banks Get OK to Work With Crypto Exchanges

South Korea

South Korea takes an important step forward in allowing banks to provide virtual accounts to cryptocurrency exchanges. Access to banking is a critical need of cryptocurrency and digital asset markets and exchanges, so the commissioner of South Korea’s Financial Services Commission (FSC) has basically said “what’s the problem?” As long as crypto exchanges and trading platforms are fully compliant with KYC (Know Your Customer) and AML (Anti-Money Laundering) protocols, banking arrangements should be available. Once again, progress and innovative regulations reside in places like South Korea and other countries. Hello U.S. regulators.
(Bill Taylor/ Fintek Capital)

Choi Jong-Ku, the commissioner of the Financial Services Commission (FSC) of South Korea, has reaffirmed that there exists no issues related to compliance and security in the process of banks providing virtual bank accounts to local cryptocurrency exchanges.

At the state affairs audit conducted by the government of South Korea to evaluate the progress of all government agencies and commissioners in the nation, commissioner Choi emphasized that as long as cryptocurrency trading platforms are well equipped with Know Your Customer (KYC) and Anti-Money Laundering (AML) systems, digital asset platforms will be able to obtain banking services from the country’s commercial financial institutions.

“There exists no issue in banks providing virtual bank accounts to cryptocurrency exchanges. If digital asset trading platforms have KYC and AML systems in place, there is no problem in issuing virtual bank accounts to exchanges,” commissioner Choi said.

In South Korea, crypto exchanges employ a unique system called virtual bank accounts that enable users to deposit and withdraw the South Korean won instantly so that users can hold KRW on exchanges securely.

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In early 2018, the government of South Korea encouraged banks to prevent working with cryptocurrency exchanges to eliminate the possibility of laundering money using digital assets…

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