New Reserve Requirement for South Korean Crypto Exchanges
South Korea has introduced a new reserve requirement for cryptocurrency exchanges, mandating them to have a minimum of $2.3 million in reserves. The reserve requirement will take effect in September 2023 and aims to ensure that exchanges can compensate users in the event of hacks or system failures. Other regulations, such as robust know your customer (KYC) and authentication for collection transfers, will be implemented in January 2024. However, smaller exchanges operating only coin-coin markets without real-name accounts may struggle to meet the September deadline due to declining transaction volumes.
Key Points:
- Cryptocurrency exchanges in South Korea must have a minimum of $2.3 million in reserves.
- The reserve requirement takes effect in September 2023.
- Other regulations, such as KYC and authentication, will be implemented in January 2024.
- Smaller exchanges without real-name accounts may have difficulty meeting the September deadline.
- Major exchanges like Upbit and Bithumb are working towards implementing the guidelines.
Overall, the new reserve requirement for South Korean crypto exchanges is a significant step towards enhancing investor protection and ensuring the stability of the cryptocurrency market. While larger exchanges are preparing to comply with the regulations, smaller exchanges may face challenges in meeting the deadline. It remains to be seen how the implementation of these guidelines will impact the overall crypto ecosystem in South Korea.
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