Starting in September, South Korean cryptocurrency exchanges such as Upbit and Bithumb are required to maintain a minimum of $2.3 million in their bank accounts, as reported by local media.
This rule is set by the Korea Federation of Banks to protect users of these exchanges. The new guidelines say that exchanges need to save either $2.3 million or 30% of their usual account funds, whichever is higher. This helps them be ready for any problems. However, they can’t save more than $20 million this way.
South Korea Implemented Crypto Bill this year to protect people who use cryptocurrencies. These laws let important financial groups watch over crypto exchanges and the money they have. They can also punish anyone who trades unfairly.
Last month, the South Korean government urged crypto firms to enhance their compliance capacity, mandating the disclosure of cryptocurrency holdings, types, and usage. This measure aims to ensure transparency and maintain accurate record-keeping.
These new regulations in South Korea demonstrate a proactive approach to safeguarding cryptocurrency users and ensuring accountability within the industry.
Also Read: South Korean City Takes Action Against Crypto Tax-Evasion
