Bithumb, Upbit, Coinone and Korbit, some of the largest crypto exchange companies in South Korea, recently announced the signing of their Memorandum of Agreement on the country’s “travel rules” policy.
The travel rule is a requirement by the South Korean government that crypto exchange companies disclose information about the sender and recipient of the cryptocurrencies they manage.
According to the four companies, it is their responsibility to comply with government regulations to reduce the risk of cryptocurrency fraud and to make transactions safe and transparent.
As soon as possible
The companies also said they will meet the government’s requirements as soon as possible, not just to meet them, but to better protect the safety of their customers.
With the revised Law on Specific Financial Information, the “Travel rule” was added to provide an additional layer of protection for cryptocurrency transactions.
The deadline for compliance with the rules for crypto exchange companies has been extended to March 25, 2022 to give companies more time to set up a system to exchange industry information.
With the implementation of the new requirement it became clear that not all companies are satisfied with it. In fact, other crypto exchange companies are planning to bring charges against the South Korean government over the additional requirements of the Specific Financial Information Act.
Also, some of the largest banks in South Korea like NH Banks and Shinhan Bank are very careful with their crypto exchange companies, which include Upbit, Bithumb, Coinone and Korbit.
The lack of initiatives by banks to reach out to crypto exchanges is a clear indication that they are not ready to partner with them just yet.
Image courtesy of Cointelegraph News / YouTube
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