South Korean financial regulators have asked banks to provide information about their relationships with cryptocurrency companiessince then, as reported by local media on Wednesday The authorities are trying to determine how many crypto exchanges are operating within the country’s borders.
An unidentified regulator has asked banks to disclose the corporate accounts of crypto exchanges that have not yet implemented real accounts for their cryptocurrency clients.. So far, only the four largest exchanges in South Korea have set up real accounts, while the rest have so far operated under the radar.
“At the moment, Crypto exchanges can operate without government approval, making it difficult to determine the exact number of cryptocurrency exchanges. One way to find out is to keep track of the bank accounts of companies that raise funds from customers.“an anonymous exchange officer told The Korea Herald.
It is estimated that there are between 100 and 200 crypto exchanges that are outside the purview of the government. Any company that did not register its activities prior to September 24th may face the revised Law on Reporting and Use of Information on Certain Financial Transactions and faces a prison sentence of up to five years..
The revised law requires crypto exchanges to set up adequate security management systems, enter into transparent partnerships with local banks, and submit reports. to government agencies.