Bithumb, Upbit, Coinone, and Korbit, which are some of the largest crypto exchange companies in South Korea, have recently announced the signing of their Memorandum of Agreement regarding the country’s “travel rule” policy.
The travel rule is a requirement of the South Korean government to crypto exchange companies to disclose the information about the sender and receiver of cryptocurrencies they are managing.
According to the four companies, it is their responsibility to be in line with the government’s regulation to reduce the risk of cryptocurrency frauds and make transactions safe and transparent.
As soon as possible
The companies also said that they will comply with the government’s requirements as soon as possible, not only for the sake of complying but to better protect the security of their clients.
Through the revised Specific Financial Information Act, the ”travel rule” was added to provide an additional layer of protection on cryptocurrency transactions.
The deadline for crypto exchange companies to comply with the rules was extended until March 25, 2022, to provide the companies more time to establish an industry information-sharing system.
With the implementation of the new requirement, it was clear that not all companies are happy with it. In fact, other crypto exchange companies are planning to file charges against the South Korean government for the additional requirements made in the Specific Financial Information Act.
Also, some of the biggest banks in South Korea such as NH banks and Shinhan Bank are very cautious in dealing with crypto exchange companies which include Upbit, Bithumb, Coinone, and Korbit.
The banks’ lack of initiatives to reach out to crypto exchanges is a clear indication that they are not yet ready to work with them.
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