Korea to Tighten Crypto Exchanges Rules

Now domestic banks who provide services to crypto exchanges must now monitor all the accounts held by an exchange
28 June 2018   476

The Financial Services Commission of South Korea (FSC) has tightened the rules to combat money laundering, which relate to the activities of crypto exchanges. This is reported by CoinDesk.

According to the amendments, the banks that serve the exchanges are required to control the movement of both funds in the accounts of traders and their own assets of the cryptoexchanges. Also, financial institutions should notify the FSC about suspicious transactions.

The new rules appeared after check of three large Korean banks - Nonghyup Bank, KB Kookmin Bank and KEB Hana Bank. The regulator found that some exchanges transferred assets from the deposit account of investors to their own operating accounts.

According to the FSC, due to lack of control, exchanges can launder money or evade taxes by using their operating accounts to purchase cryptocurrency on foreign platforms.

As reported, the amendment will require banks to keep an eye out for transactions in which exchanges move assets to or from foreign exchanges. In cases where suspicious transactions come to light, the information must be shared with the FSC.

Ex S&P President to Invest in iComply Startup

The startup is aimed at developing tools and services to meet the regulative standards for blockchain start-ups
14 August 2018   114

Startup iComply, working in the field of regulatory technologies and compliance with standards, has just completed the initial round of financing, which was headed by former Standard & Poor CEO Deven Sharma, CoinDesk reports.

IComply, aimed at developing tools and services to meet the regulative standards for blockchain start-ups (especially for those that conduct ICO), said on Monday that it attracted a seven-figure sum during this invest-round, but did not say the exact figure. The round was also attended by DMG Blockchain and Block X Capital.

In addition, iComply reported that it was joined by former employee of the Commodity Futures Trading Commission (CFTC) Jeff Bandman, former Managing Director of NASDAQ and the Financial Services Industry Regulation Service (FINRA) Manny Alikandro, MIT Connection Science program member, Praveen Mandal and Prosecutor Thomas Linder.

According to Sharma, he decided to invest in the startup iComply, because the project "is focused on services for ICOs related to risks and compliance with standards." Compliance with the standards, he said, will ensure the transparency of ICO issuers and thereby help to ease the concerns of regulators.

Sharma also believes that iComply can contribute to the spread of crypto technologies, helping the entry of traditional financial services into this industry.

My interest is to see iComply evolve into a benchmark that investors can use to assess credibility of issuers, sustainability of underlying services and the price of ICOs. iComply's patent-pending software enables both security and utility tokens to monitor and document compliance, governance and risk procedures, before a public blockchain executes an immutable trade, providing trust, integrity and transparency for our clients. There have been a few ICOs that had a fundamentally robust offering that I understood and did interest me [but I] missed the opportunity. Others that have transparency from a service like iComply, I would [invest in].
 

Deven Sharma

Ex-president, Standarts & Poors

It is the ideas of transparency and trust, according to Sharma, that sparked his interest in order to start working with the blockbuster.