South Korean regulators are asking banks to disclose details of their dealings with their local cryptocurrency firms in a bid to tighten regulatory control of the sector. Authorities are reportedly trying to identify how many cryptocurrency exchanges are operating within the country. The undisclosed regulatory agency has said banks must divulge the details of such crypto exchanges that have yet to implement real-name accounts for crypto users.
Only a few exchanges have implemented new measures.
According to The Korea Herald report, only the four largest crypto exchanges in the country have implemented the measures so far. Most of the crypto exchanges have yet to declare their hand and are thought to be operating under the gaze of regulators. An exchange official told South Korean news outlets that cryptocurrency exchanges were currently operating without the government’s approval, making it difficult for authorities to see the full picture of the industry. The official suggested that by applying pressure to the country’s banks, regulators could better understand the state of play in the sector. South Korea is also implementing the crypto tax law starting next year.
Over 100 crypto exchanges are thought to be operating in South Korea.
There are thought to be over 100 cryptocurrency exchanges operating in South Korea, which the government has not yet identified. Crypto exchanges have until September 24 to register with the authorities or face penalties under the Act on Reporting and Using Specified Financial Transaction Information. The act also includes provisions for jail sentences and other fines for any corporate officials failing to meet the requirements, with up to five years behind bars available for the most significant breaches. The revised laws are part of a wider clampdown against the digital currency sector in South Korea, with several government agencies keen to regain control of the emerging industry.