South Korean Tightens Reserves Requirements for Crypto Exchanges

In a move aimed at improving consumer protections, South Korean crypto exchanges will be required to set aside a minimum of 3 billion won (approximately $2.3 million) in bank accounts as a safeguard.

The new requirements apply to exchanges that have been issued accounts from real-name local banks and come into force starting from September, as per the "Virtual Asset Real-Name Account Operation Guidelines" published by the Korea Federation of Banks (KFB) in July this year.

According to the guidelines, the 3 billion won minimum of the required cash reserves corresponds to 30% of crypto exchanges' daily average deposits or 3 billion won and higher. These reserves will be capped at 20 billion won.

In a separate development, South Korea's Financial Services Commission (FSC) last month announced the implementation of new rules, set to take effect in January 2024.

The new regulations will mandate local firms that issue or own cryptocurrencies to disclose a range of information, including the amount and characteristics of their crypto tokens, business models, and internal accounting policies concerning the sale of cryptocurrencies and associated profits.

(Source: Decrypt)