With cryptocurrencies becoming the international sensation that they are today, many governments have decided to integrate them into their own countries. However, since the cryptocurrency market is very much the wild west of all the financial markets, countries have taken it upon themselves to better regulate it.
The US, while still quite behind compared to other countries, is currently drafting better crypto regulations. India is also a country with one of the biggest adoption rates out of any other country in the world. And joining all of these other countries is South Korea, which crafted its crypto legislation fairly quickly.
More impressively, after implementing theri laws, they made it very clear that companies that are looking forward to operating in the country will have to follow them. And so far, 28 firms have followed through on their promise and have adapted to these new regulations. South Korea has given its crypto firms till the 24th of september to accept these regulations. If they fail to meet them, their business will shut down.
To become one of the companies allowed to still work within the country, they will have to follow some steps. The first step involves them receiving a certificate from the information security management system before the 24th of september. They will also have to inform the Financial Intelligence Unit that they have received the proper documentation. Only then will they be able to operate within the country.
But given how close the deadline is getting, many government officials are fairly confident that no other companies will now be joining them. The head of planning and coordination office for the FIU, Jeon Yo-Seop commented on the approaching deadline. Even he believes that as the deadline comes closer, there are fewer companies that will now make the cut.
Another one of the terms to operate within the country is that crypto exchanges will also have to work with banks throughout their tenure. Banks will be providing their customers with verified accounts that they can use to withdraw or deposit funds as they please. This can significantly reduce the risk of scams within the country.
As of now, only the biggest crypto exchanges within the country have managed to work with banks as well. These companies include Korbit, Bithumb, Coinone, and Upbit, four of the biggest cryptocurrencies in the country.
Therefore, even though 28 companies have come through on the other regulations, most of them have yet to work with banks. More specifically, 24 crypto exchanges have yet to work with banks to keep their business running. But with the way that things are going, South Korea is handling crypto very efficiently.