South Korea has six conditions in order to allow crypto exchanges
In order to allow crypto exchanges to operate in South Korea, the government declared that it has six conditions. The South Korean government declared that it is preparing a bill to amend the Act on Regulation of Similar Reception. The Article 1 of the law states that:
“The purpose of this Act is to protect good traders and to establish a sound financial order by regulating Similar Receiving Behaviors.”
South Korea willing to accept crypto exchanges under certain conditions
To be added that under the new conditions, the definition of digital currency transactions will include words like managing, storing, exchanging, arranging, issuing virtual currency, and acquiring.
Bithumb, the largest bitcoin exchange, has sent an email to Reuters, saying that: “A right set of regulations will rather nurture the (virtual currency) market, and we would welcome that.” This means that Bithumb thinks that this new set of rules will provide legitimacy to the market.
So, the six conditions have been named and all these conditions must all be met, while “a Presidential Decree will provide additional conditions.” The first rule is that customers’ funds must be kept separately. The second rule is that they will have to confirm their real names.
The third rule is that all users will have to be informed of investment risks. The fourth and fifth rules are that crypto exchanges will have to come with an anti-money laundering system and must provide a protection system. The last rule is that crypto exchanges will have to offer transparency and disclosed transaction details to customers.
Those who will break one of these six conditions will be facing “imprisonment for up to 5 years or a fine of up to 50 million won.” If the law will be violated, the government will increase the penal cause and will introduce “punishment of 10 years imprisonment or a fine to up to 500 million won.”
