The Korean Blockchain Association (KBA), founded in 2017 by South Korean companies from the blockchain industry, proposed setting rules for self-government within the association to set a standard for the entire industry of crypto exchanges.
Among other things, the minimum authorized capital of exchange member is proposed to limit 2 billion Korean won (1.8 million dollars). In addition, the members of the association will have to provide financial and audit reports.
These rules will be applied to 14 South Korean cryptoexchanges, including Bithumb, Coinone, Gopax, OKCoin Korea and Huobi Korea. In addition, as the South Korean edition of Yonhap writes, when the rules come into force, it will also oblige members of the association to store data on user transactions for five years. In addition, the exchange must have built-in systems that identify and report suspicious transactions.
These rules are part of a broader initiative to improve anti-money laundering measures launched by the South Korean Financial Services Commission.
We will establish the order of the domestically cryptographic [exchange] market through self-regulatory review. By providing a safeguard for the protection of users, we will contribute to ensuring the asset safety.
Chairman, Korean Blockchain Association
Measures to self-regulate the industry of Korean crypto-exchanges are consistent with the intentions of some local exchanges to adhere to a more conservative approach to new crypto-currencies and ICO.
So, according to the proposed rules, within each exchange a committee will be formed to review the listing of new tokens issued through the ICO. It is also planned to introduce ethical codes to prevent insider trading.
Representatives of the OKCoin Korea exchange informed that their company "is preparing to fulfill all the criteria and full compliance with the new KBA rules."
We are definitely welcoming new self-regulation measures and thinking positive on this active movement to make reliable blockchain ecosystem. As part of this effort, Coinone has already set its internal organization and system to make transparency in trading of cryptocurrencies.
According to Yonhap, the rules will be finalized by the end of next month. Each member of the association must provide the necessary documents before June 8.