South Korean Crypto Exchanges To Self-Regulate To Stabilize Crypto Market

The Korean blockchain association has come forward to introduce the self-regulatory standards for cryptocurrency exchanges. 23 South Korean exchange operators have agreed to go under the review that will also request banks for new virtual accounts that the banks have yet to issue.

23 Crypto exchanges join Korean blockchain association for self-regulation

Self-regulation is certainly the new element that the cryptocurrency exchanges and governments are moving towards in order to protect the market from irregularities, thefts, and frauds.

The latest addition to this growing list is the Korean Blockchain Association that is working on establishing a self-regulatory body to review the crypto exchanges operating currently in the market.

The committee of the association will also be defining the standards for the self-regulation. Jeon Jae-jin, the chairman of the committee stated:  

“We will focus on establishing the safety and transparency of the exchanges.”

The association asked about 33 member exchanges to undergo the self-regulatory review. However, only 23 of these exchanges agreed. The 10 members that refused were removed from the association which included Coinest.

These agreed member crypto exchanges are Zeniex, Kairex, Huobi Korea, Kcx Exchange, Komid, Korbit, Coinone, Coinzest, Coinplug, Crypto Company, Dexko, Korea Encryption, Money Exchange Glosfer, Nexcoin, Neoframe, Upbit, Bithumb, Gopax, Coinlink, Scoin, Okcoin Korea and Whalex.

Also, read: Japanese FSA Reviews Crypto Regulations, Stricter Rules In Sight

Self-Regulation standards to be launched in a few weeks

The standards for the self-regulation of crypto exchanges will be released in a few weeks for which the association is working with a legal firm.

The Korean Fair Trade Commission (KFTC) has provided recommendations for the standards including “a wide range of disclaimers, restrictions on unauthorized deposits and withdrawals, restrictions on the arbitrary use of services, and corrective clauses on identity and password management.” The association is planning to incorporate these recommendations into their standards.

Under the review, the exchanges will be checked for compliance, security measures, investor protection and coin listing procedures. Furthermore, the real-name system implemented by the South Korean government in January will also be considered here as these exchanges will request the banks for new virtual accounts as the banks haven’t provided them yet.

Do you think self-regulation is the answer? Will these 23 member exchanges be able to make an impact in the crypto market?