The South Korean crypto industry is in line for significant growth in the coming months after local exchanges agreed to collaborate to good effect. This new agreement was signed by representatives from seven crypto exchanges in the region at a debate held in Seoul on Monday and attended by several members of the Congress.
The partnering exchanges include Bithumb, Coinone, Korbit, UpBit, Gopax, Coinplug, and Hanbitco who will now work toward the creation of a sound cryptocurrency ecosystem in the country.
As part of the agreement, the exchanges will develop a real-time monitoring tool that detects illegal transactions such as money laundering or phishing attacks. They will also introduce new restrictions for unverified customers and will generally implement any upgrade that can guarantee more investor protection on their platforms.
Even though there are no penalties for exchanges who fail to comply, the partners have agreed to the new improvements and will begin to implement them. The measures will also serve as a guide until the central government releases a legally-binding framework for crypto exchanges.
Call For Institutionalization of Crypto Exchanges
The report confirms that one of the issues raised at the parliamentary meeting was that of allowing crypto exchanges to exist as recognized institutions.
Speaking on the matter, South Korea’s Financial Services Commission (FSC) official, Kwon Dae-young said that the agency was working to give exchanges that status but have come short because of some issues.
“We have to answer the question of how to deal with the damage and tears of many virtual currency investors. We must see if any of the projects that can help the people in their daily lives have been presented. Trust and authenticity are important.” Kwon said
So for the meantime, it will be the regulations and trust created by the local crypto exchanges that will guide their activities. In the future, these operators may come under the globally recognized framework for cryptocurrencies which the G20 member nations hope to introduce before 2022.