Bitcoin News and Finance
Korean Banks to Be Relieved of Liability for Crypto-Related Crime, Report Suggests Skip to main content

Korean Banks to Be Relieved of Liability for Crypto-Related Crime, Report Suggests

Korean Banks to Be Relieved of Liability for Crypto-Related Crime, Report Suggests

Banking institutions in South Korea have reportedly requested to not be held accountable for crimes linked to cryptocurrencies such as money laundering. According to local media, financial regulators are now developing rules that could relieve Korean banks from responsibility when screening the crypto exchanges they work with.

New Guidelines to Appease South Korean Banks

Korean Banks remain reluctant to open real-name accounts for traders on domestic cryptocurrency exchanges, the Korea Herald wrote on Sunday. The reasons hide in recently adopted regulations obliging the trading platforms to partner with local financial institutions. Few of them have managed to do so as banks fear they could be held liable for money laundering, fraud, and other offenses related to cryptocurrency transactions.

The Financial Services Commission (FSC), South Korea’s main financial regulator, is now considering issuing specific guidelines that may lift part of the burden from the banks, the Korean daily revealed, quoting an unnamed government official. The publication elaborated that the guidelines are likely to come in the form of “no-action letters” in which members of the government can state they are not recommending legal action against banks in case the aforementioned issues arise.

According to the official, a final decision on the matter is expected by the end of next month. The report suggests that regulators are aware of concerns expressed by financial institutions. Banks now run the risk of being held responsible for failing to detect potential fraud or money laundering activities when issuing real-name accounts. The provision of relevant guidelines ensuring that Korean banks are protected from such risks can alleviate their worries and open them to crypto service providers.

Banks and Exchanges Stuck on Real-Name Accounts Issue

Amendments to the Act on Reporting and Using Specified Financial Transaction Information, which went into effect in March, require Korean crypto exchanges to partner with local commercial banks that should issue real-name accounts to their users by Sept. 24. However, major institutions such as the banking group Hana have decided to keep away from the sector for now.

Only the four largest trading platforms, Upbit, Bithumb, Coinone, and Korbit, have so far succeeded in finding a banking partner. The online K Bank currently opens real-name accounts for Upbit, while Shinhan Bank is working with Korbit and NH Nonghyup Bank provides the service to Bithumb and Coinone, the Korea Herald detailed.

Korean Banks to Be Relieved of Liability for Crypto-Related Crime, Report Suggests

At the same time, hundreds of smaller exchanges are under threat of being banned from withdrawing funds for cryptocurrency trading in case they fail to secure a partnership with a Korean bank by the September deadline. All of South Korea’s 200 platforms can be shut down, FSC Chairman Eun Sung-soo warned in April.

Meanwhile, a number of Korean exchanges have started to delist some “high-risk” coins and put others on warning lists in preparation for the upcoming stricter rules for crypto-related transactions in the country. The delisting, which has increased volatility in the market, is also viewed as a move to appease Korean banks.

Do you think crypto exchanges will manage to convince Korean banks to open real-name accounts for their traders? Tell us in the comments section below.

Labels:

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Post a Comment
Read more
Blogarama - Blog Directory