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   1056

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.

Binance Singapore Unit to Apply For License

Under the new law, aimed at regulating crypto paymetns and trading, firms must register with the Monetary Authority to receive a license
17 February 2020   230

Binance, a Singapore-based cryptocurrency exchange unit, has applied for a license under the new Payment Services Act, which entered into force on January 28.

We have already applied. We submitted the application pretty fast. Binance’s Singapore entity has been in close touch with the local regulators, and they have always been open-minded.

 

Changpeng Zhao

Founder and CEO, Binance

Under the new law, crypto companies in Singapore must register with the Monetary Authority and receive one of three licenses: an exchange of money, a standard or large payment institution. The measure is aimed at regulating payments and crypto trading using requirements for participants in the traditional finance industry. Zhao did not specify which of the licenses Binance Singapore chose.

Binance has been offering crypto-fiat trading services in Singapore since April 2019 and works with eight coins, including Bitcoin, Ethereum and XRP. The trading platform is supported by Vertex Venture Holdings, a venture division of Singapore's Temasek Holdings.