50 Korean crypto firms apply for new licenses as strict regulation looms

 50 Korean crypto firms apply for new licenses as strict regulation looms

Fifty crypto companies based mostly in South Korea have applied for a license beneath the brand new Data Safety Administration System (ISMS), a government-backed certification that certifies firms that meet stringent requirements of knowledge safety and privateness.

Crypto rules are coming

The regulation takes impact in September 2021 and is among the first certifications for crypto companies in Korea. The nation enjoys one of many greatest crypto buying and selling populations on the earth, with numerous younger adults making an attempt their luck within the crypto markets.

Nonetheless, with the area being notorious for its non-regulated nature and the seemingly endless quantity of scams, the Korean authorities has launched or is planning to introduce, various legal guidelines to higher regulate the native crypto scene.

The ISMS is one among these. As per a launch, the certificates assesses companies over numerous criterias—reminiscent of general threat administration, entry management, server and safety administration, and others—to stop untoward incidents and lapses which will price Koreans a good bit of losses.

And exchanges aren’t shying away from getting licensed both. 20 native exchanges have already acquired the ISMS certificates (together with UpBit and Kobit), whereas 30 others have utilized and are within the wait traces. Of the latter, eight purposes are stated to be at present getting revised and processed.

Subsequent steps

The licensed exchanges—and others that get licensed at a later date—are actually speculated to cooperate with native banks to offer details about crypto customers and all transactions are carried out (from fiat) carried out through their accounts. 

This step is alleged to be a safety measure for potential embezzlement and cash laundering.

In the meantime, Korean exchanges have began to delist altcoins that put them within the uncertain class forward of the rules.

Tickers like MARO, PCI, QTCON, and SOLVE confronted the hammer on some exchanges final week, with some comparatively greater names like BZRX getting delisted too. As a result of when the authorities come knocking, nothing is decentralized anymore.

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