Bitcoin, Crypto currency, Blockchain

South Korea: the United States makes pressure on crypto exchanges need to be safer

Crypto-exchanges as well as banks in South Korea have currently washing with the new Anti-money-to fight the laws and Know-Your-Customer rules. After sanctions from the USA, you want to cooperate better with the United States, in order to improve the security infrastructure of the stock exchanges.

South Korea, crypto-currencies, Exchanges, the price of Bitcoin and regulation: A seemingly never-ending story. As a reminder: In September of 2017 messages that Exchanges have been hacked in the East Asian country reached us again and again. Quickly, rumors began circulating that Kim Jong-Un, and under him a standing Regime were behind it. Whether the dreaded dictator hoards now in fact, bitcoin has yet to be established, however. Then it was, especially in the regulatory environment, according to South Korea. So the government thought about it, to forbid the trade with crypto currencies.

The people, not a settled fact, however, and promptly replied with a Petition that put the government under pressure to act. The initiators were able to gather enough supporters to ensure that the government sets differentiated with the theme. This pressure came in last, at least indirectly, from the company’s own ranks. So government officials were under suspicion of Insider-trading and operated by benefited with the information known to you at the collapse of the Bitcoin exchange rate in January.

So it was then also that the government has developed a System for the Verification of the identity of Bank customers. Accordingly, it was for South Korean Exchanges a duty of information on transactions with the government. The authorities introduced the System 20. January 2018, since then, anonymous Trading with crypto-currencies in South Korea much more difficult.

At least in theory. Because, as Korean media reports, now, do the banks still had a hard time with the Anti-money laundering laws and the associated Know-Your-Customer rules are correctly adhered to. The reason is the lack of (trained) staff is apparently:

“Apart from the efforts [of the banks] warned the Korean financial Supervisory authority, the banks have not improved their internal control systems are sufficient.”

Hand-in-Hand? USA and South Korea anti-money laundering

In order to improve the infrastructure of the banks in terms of safety, it was decided to the effect, apparently, with the United States to cooperate. Under the Competent from South Korea, with the of Trump services responsible for the supervision of the Office of Terrorism and Financial Intelligence. This is, among other things, responsible for ensuring that terrorists do not receive financial support. In addition, it is for financial crime, economic sanctions against “rogue States”, as well as the fight against weapons of mass destruction. In relation to the Monitoring of crypto-currencies in South Korea, Mandelker improvement saw Sigal needs:

“The Secretary of the U.S. Treasury Sigal Mandelker has discussed with Kim Yong-beom, the Vice-President of the FSC [the Korean financial Supervisory authority], how to laws can improve the Anti-money laundering-especially in terms of crypto-Assets. Besides, it was a matter of international cooperation.“

Furthermore, the competent authority of the United States wool look at the South Korean banks in more detail on the fingers. Especially those that operate in New York, were under suspicion of the Anti-money laundering to comply with the laws enough. In this context, the United States has already imposed a penalty of eleven million US dollars compared to the Nonghyup Bank. You’ve already found some gaps in the security system and will do in the future for more investigations.

In order to prevent further sanctions in the future, is now working for the government in South Korea, with high pressure to prevent the safety of the country’s own banks.

The crypto exchanges to draw in the meantime. So Bithumb blocked in the course of the regulatory efforts already in the access for eleven countries and transaction limits. Also Upbit has already introduced the new security system, while a further 23 Exchanges have agreed to follow the provisions of the Korean Blockchain Industry Association.

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