Cryptocurrency exchanges in South Korea will scrutinize themselves: Report

 

The largest organization in the South Korean cryptocurrency industry will conduct self-assessments of its members to ensure that they play self-regulation rules.

The Korean Blockchain Industry Association, an organization that includes 33 cryptocurrency exchanges, revealed that it would conduct 21 trade valuations to ensure that they follow a series of measures self-regulation mandated by the entity in December, reports Yonhap.

First announced in December, the movement to foster a self-regulatory environment has seen a number of measures including ethical codes for exchanges to improve the transparency of what is has become one of the most important cryptocurrency markets. The industry body also imposed strict rules to prevent insider trading and market manipulation.

The largest cryptocurrency exchanges in Korea, including Bithumb, Coinone, Upbit and Korbit, will all be subject to assessment, according to the report.

The self-regulation guidelines were introduced after the proposal of a general ban on cryptocurrency by the South Korean Ministry of Justice in mid-December, promptly followed by strict guidelines by the government.

However, the domestic cryptocurrency industry got a reprieve this week after the country’s financial regulator backed cryptocurrency trading for “normal” and non-anonymous transactions. The regulator also insisted that the government would urge traditional banks to establish links with stock exchanges to transact via virtual bank accounts. In addition, the regulator asked the government to focus on developing a framework for the “standardization” of cryptocurrencies in society, instead of increasing regulation.

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