South Korean cryptocurrency exchanges will be forced to maintain at least 3 billion won ($2.3 million) in bank reserves beginning in September.
South Korean cryptocurrency exchanges must set aside $2.3 million in reserves beginning in September.
The action is considered part of the country’s efforts to boost consumer safety in the fast-rising cryptocurrency sector.
South Korea’s main cryptocurrency exchanges, including Upbit and Bithumb, are reportedly aligning their operations with new Korean Bank Federation norms.
These guidelines, titled “Virtual Asset Real Name Account Operating Guidelines,” were released in July and required crypto exchanges to keep reserves equivalent to at least 30% of their average daily deposits, with a ceiling of 20 billion won.
This measure attempts to ensure that exchanges can meet their commitments to users in the event of potential risks or losses.
The need to protect crypto investors and increase openness in the market is driving regulatory changes in South Korea.
The country’s parliament passed a comprehensive piece of legislation in June that included 19 crypto-related bills that granted regulatory authorities to entities like the Financial Services Commission (FSC) and the Bank of Korea.
[embedpost slug=”/binance-ensures-smooth-transition-for-bnb-network-upgrade-and-hard-fork/”]
