South Korean banks are allowed to work with cryptocurrency exchanges

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The Minister of Finance, South Korea Choi Jong Ku allowed local banks to provide services to the cryptocurrency exchanges that use a system to identify customers and fulfill the requirements of the legislation, aimed at combating money laundering.

In early 2018, the South Korean authorities advised the banks to stop working with cryptocurrency trading platforms to eliminate the possibility of money laundering using digital assets. Despite the recommendation of the government, a leading commercial Bank Nonghyup has continued to cooperate with the exchanges, however, this summer on the Bank’s management was under pressure from the authorities, and they had to close accounts trading platforms.

South Korean blockchain Association that represents the interests of cryptocurrency exchanges said that trading platforms have begun to apply measures aimed at combating money laundering, and use the system of customer identification. In relation to the low level of security of exchanges representatives of the Association reported that the largest of the company’s plan to insure money traders.

Security leading South Korean exchanges Bithumb, Upbit, Gopax, Korbit, Coinone recently successfully passed the test. According to the analytical report of the Ministry of science and information technologies, trading company UPbit, Bithumb, Korbit, Coinnest, Coinlink, Coinone, Coinplug and Huobi have a sufficient level of security and good management system.

This week second in trading volume in the Korean stock exchange Bithumb suspended work with all banks excluding Nonghyup. Because of this, many traders have moved on to other trading platforms, in particular, Gopax, Upbit, Coinone and Korbit, which cooperate with all banks. On the South Korean market, competition intensifies, major exchanges start to lose customers, traders are switching to the new platform, more profitable and convenient.

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