Crypto exchanges in South Korea are obliged to create reserves in the amount of at least $2.3 million
Date: 2023-08-29 Author: Karina Ziganova Categories: CRYPTO PAYMENTS, IN WORLD
News1 reports that a South Korean cryptocurrency exchange must set aside at least 3 billion won ($2.3 million) in its bank account reserves from September 2023.
According to the new "Virtual Asset Live Account Guidelines", the Banking Association requires cryptocurrency exchanges to set up a reserve fund of at least 3 billion won, or 30% of the average daily amount of deposits.
This step is necessary so that the exchanges can ensure that they meet their obligations to compensate users for losses in the event of risky situations. This is stated on News1.
Also in the new guide there are recommendations regarding some other standards. In this case, we are talking about the Know Your Client (KYC) procedure and additional authentication when making money transfers. But the implementation is scheduled for January 2024.
Representatives of the two largest exchanges in South Korea, Upbit and Bithumb, have already stated that they are ready to follow the new guidelines.
A bill on digital assets was passed by the South Korean authorities at the end of June to protect investors.
