The South Korean government interviewed 20 exchanges to apply for a license to submit matters related to lawsuits and hacking in the past five years

South Korea’s cryptocurrency authority held a symposium with the heads of 20 exchanges to communicate about cryptocurrency regulation and other related issues. The government proposed relevant guidelines and is expected to set up a special working group to specifically manage exchange declarations.

The South Korean government interviewed 20 exchanges to apply for a license to submit matters related to lawsuits and hacking in the past five years

On June 3, the Financial Intelligence and Analysis Institute (KoFIU), a subsidiary of the Korea Financial Commission, convened 20 cryptocurrency exchanges and held a closed-door symposium to discuss issues related to cryptocurrency exchange license declarations and other issues.

It is understood that the meeting was the first relevant meeting held by KoFIU since it was designated as the cryptocurrency operation management and main regulatory unit on May 25. In addition to the heads of 20 exchanges certified by ISMS (Information Security Management System), the Korea Financial Supervisory Service, Custodian and Clearing House, and Koscom Korea Securities and Electronic Clearing Corporation also participated in the discussion together.

According to the financial committee officials, the meeting was aimed at guiding through consultation and discussion to help cryptocurrency exchange operators successfully complete the filing process by Sept. 24. During the meeting, KoFIU proposed that cryptocurrency exchanges should add the requirement of submitting a business promotion plan to the filing process. The plan should include: company overview, business content, financial status, current status of executives and staff, internal anti-money laundering system, and investor protection program, among other things. Some analysts believe that KoFIU has explained the requirements for accepting cryptocurrency operators’ declarations, while providing substantial guidelines.

-the need to document whether the company, its largest shareholder, representatives, and executives have committed illegal acts during the last 5 years and their main elements.

-the need to document the detailed course of events and responses to hacking during the last five years

-The need to record instances of cash withdrawals or delays in withdrawing coins, etc., and corrective measures.

-The main contents of lawsuits, investigations by judicial authorities, bankruptcy, suspension of business, etc. during the last 5 years.

-The company must record the details of investigations and sanctions by other government agencies in the last five years and the measures taken to respond to them.

The Korean media said that if each company’s business promotion plan is submitted as required above, it is still unknown whether the four major Korean exchanges (Bithumb, UPbit, Coinone, Korbit), such as Bithumb, whose company representatives have been referred to the prosecutor’s office for alleged fraud, and UPbit, whose trading and deposit delay problems are frequent, will pass the FIU’s examination.

In addition, the people involved in the meeting revealed to PANews, “The meeting discussed the directionality of the cryptocurrency application scheme, and in the future, it is planned to form a task force centered on the participating institutions to carry out related management.” According to the Korean media, the task force is likely to monitor the registration and declaration of exchanges in accordance with the Specific Financial Information Act, which came into effect on March 25. The task force will also be used to achieve transparency in cryptocurrency transactions, security of transactions, and investor protection.

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