During a recent meeting with financial regulators, small and medium-sized stock exchanges in South Korea had the opportunity to express their complaints to the government.
According to a message South Korean correspondent D.Street, the Financial Services Commission (FSC), would convene a meeting behind the door with 20 cryptobourses on Thursday.
Internal sources quoted by D.Street say that the session behind closed doors was an example between the FSC’s financial intelligence unit (FIU) and 20 cryptobourses, where the former expressed the government’s desire to implement the Virtual Asset Service Provider (VASP) report.
In fact, on May 28, the FSC issued an issue outlining its intention to strengthen cryptotrhet surveillance in the fight against illegal activities. Under the plan, crypto exchanges and other VASPs will be given six months to register with the government.
This registration process includes, among other things, obtaining Information Security Management System certifications and opening business accounts with real names. The 20 exchanges that attended Thursday’s meeting are the only one of the 60 VASPs currently operating in South Korea.
However, only the “Big Four” – Bithumb, Upbit, Korbit and Coinone – have secure trading accounts with a real name. At the meeting, another 16 exchanges expressed their difficulties in meeting the operational requirements for the real name among other operational difficulties.
FSC officials reportedly sympathized with the difficulties faced by smaller stock exchanges and promised not to interfere in their relations with South Korean banks. South Korean stock exchanges require a banking partnership to meet the real name trading requirement.
However, the cost of acquiring such banking partnerships reportedly exceeds the capabilities of many smaller platforms. As previously reported by Cointelegraph, the payment of the Upbit fee to K Bank in the first quarter of 2021 was 10 times more than in the previous quarter.
The South Korean government, meanwhile, has clarified roles and responsibilities regulatory authorities on cryptocurrency regulations in the country.
South Korea ‘s regulatory environment for cryptocurrencies has recently tightened with the fight against money laundering and capital gains tax policy among a number of new laws.