Companies in south korea, exchanges of crypto-currencies want to implement self-regulation

More than 40 companies in south korea, exchanges of crypto-currencies participating in the self-regulation of the market of digital currencies. Among them are 14 companies that have agreed to implement self-regulatory measures. There are particular Bithumb, Coinone, and Korbit.

This announcement came just a day after the government of South Korea has proposed the development of a device of emergency to regulate crypto-currencies in the country. The Korean Blockchain Industry Association has made this announcement on Friday. The study of this self-regulation began in September.

Regulation of deposits and accounts receivable

One of the measures of self-regulation is that the deposits obtained by the traders are kept fully in the traditional financial institutions. During this time, 70 % of their funds in crypto-currencies must be kept in refrigerated warehouses. This device is designed to protect customers. This will also reduce the risk of a cyber attack.

Here is a video which perfectly illustrates these facts :

On the other hand, only one account will be allowed to trade crypto-currencies. A verification of identity will be required before any deposit or withdrawal.

Banks must use systems of identity verification

One of the emergency measures of the government regarding the bank accounts virtual. News Bitcoin has recently explained why these accounts are necessary in the exchange of digital currency in South Korea. The repression of the regulators has prompted the country’s largest banks to announce they were no longer offer this type of service. More specifically, the regulators have asked the banks to identify users virtual bank accounts.

In addition, the banks claim that they issue these accounts without the knowledge of who are its users. The financial institutions are now collaborating with the Korean Blockchain Association to find a way to comply with the regulations. A number of major banks in south korea have begun working together to develop a system for the identification of clients with virtual accounts.

Source : NewsBitcoin