South Korea’s FSC Chairman: Investors’ Funds of Registered Cryptocurrency Exchanges Can Be Protected

Funds deposited in government-registered cryptocurrency exchanges can be protected, but investors will not be protected against price fluctuations, the head of South Korea’s financial regulator said on Wednesday, according to Yonhap News Agency. Eun Sung-soo, chairman of South Korea’s Financial Services Commission (FSC), called on cryptocurrency investors to move their funds to “safer” exchanges.
The FSC is said to be implementing a revised law from September that will require cryptocurrency exchanges to register with the regulator under strict requirements. The revised law, which took effect in March, has a grace period of six months and requires banks to open real-name accounts under stricter guidelines to prevent money laundering. Under the provision, banks will assess the transparency, business risks and potential for criminal activity of cryptocurrency exchanges, Eun said, adding that the law makes it impossible for cryptocurrency exchanges to withdraw investors’ funds without their consent.