To determine the exact number of cryptocurrency exchanges operating in the region, financial authorities have asked banks to announce their cryptocurrency businesses.
According to local media outlets, South Korean financial regulators have requested banks to disclose their cryptocurrency companies to determine the precise number of crypto exchanges operating in the region. This comes as the country tightens its hold on illicit activity in the sector. “Currently, cryptocurrency exchanges will function without approval from the government,” a crypto exchange official told the Korea Herald, “which is why it is difficult to identify the exact number of cryptocurrency exchanges.”
Regulators are trying to get a complete view of the crypto market.
Smaller exchanges collect funds from customers under one corporate bank account, except South Korea’s four main crypto exchanges, which now use real-name accounts for each customer. The names of the financial companies that issued the order have not been revealed. The decision by regulators to classify the exact number of local crypto exchanges, which is expected to be between 100 and 200, is for them to be able to place fines on unregistered companies after the grace period for the revised Act on Reporting and to use Specified Financial Transaction Information expires on Sept. 24, when the grace period for the revised Act on Reporting and Using Specified Financial Transaction Information expires.
According to the law before the grace period, crypto exchanges must form alliances with local banks.
Before the grace period, the current cryptocurrency legislation allows crypto exchanges to install information security monitoring systems and form alliances with local banks. Furthermore, to work lawfully in South Korea, crypto companies would be required to report to the financial authorities.Failure to report to authorities and continuing to work after the amnesty period will result in a five-year prison term or a fine of up to 50 million won ($44,000). As the government tries to figure out what’s going on in the blockchain world, it’s still stepping up its efforts to combat criminal activity.