BNK Busan Bank, a renowned South Korean bank, plans to offer banking services to local crypto exchanges. The bank announced the news through an official announcement on March 23, noting that it had decided to test the crypto waters before implementing changes to the Law on Specific Financial Information on March 25. According to reports, these changes will oblige all crypto exchanges to issue their real accounts.
According to the announcement, the bank’s Digital Strategy and Money Laundering Prevention departments visited NH Nonghyup Bank in Seoul on March 24th to learn about their overall mandate for issuing real-name accounts on virtual currency exchanges. Allegedly, NH Nonghyup Bank has a partnership to issue real-name accounts with two leading South Korean exchanges, namely Bithumb and Coinone.
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According to the publication, BNK Busan Bank wants to work with major exchanges that already have real accounts. However, the main target is small and medium-sized exchanges in the country that do not have real accounts. These include Copax, Gdak and Huobi Korea. Currently, Bithumb, Coinone, Upbit through an alliance with K-Bank and Kobit through a collaboration with Shinhan Bank are the only exchanges that achieve this feat.
A six month grace period to fix things
While the Special Money Act previously focused on large crypto exchanges, its amendments mandate that even small and medium-sized businesses in the sector must be given bank accounts with real names. That being said, they need to report to the relevant government agencies and make sure that their operations are legal. In order to register as an entrepreneur, the exchanges must also secure an ISMS certificate (Information Security Management System).
To give every player in the industry the opportunity to get their affairs in order, the South Korean government has extended the reporting period to September 24th. This means that small and medium-sized crypto exchanges must create accounts with real names before this time expires.
Commenting on the opportunity presented by this amendment, a senior official at BNB Busan Bank:
Since a new market is opening up with the implementation of the revised Special Interest Act, it is only one step to consider whether or not to enter the market. We will be able to do business in earnest.
BNK Busan Bank believes that getting started with cryptography is beneficial for their business. The bank noted that K-Bank’s partnership with Upbit rose more than £ 1,283,171,339.6 after BTC’s meteoric surge in February.
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