Starting from September, South Korean cryptocurrency exchanges will be required to maintain at least 3 billion won ($2.3 million) in reserves, as outlined in guidelines by the Korea Federation of Banks. This new regulation is part of South Korea’s efforts to strengthen consumer protection measures within the growing cryptocurrency industry.
The “Virtual Asset Real-Name Account Operation Guidelines” state that exchanges must hold reserves equivalent to 30% of their daily average deposits, with the intention of covering potential liability for user damages in case of risks. The maximum limit for such reserves has been set at 20 billion won. Notably, major Korean exchanges like Upbit and Bithumb have already indicated their compliance with these requirements.
South Korean authorities have been increasing regulatory oversight of the crypto sector. In June, 19 crypto-related bills were passed, granting the Financial Services Commission (FSC) and the Bank of Korea the authority to supervise crypto operators and asset custodians. These regulations also allow for penalties in cases of unfair trading of virtual assets. Additionally, domestic companies will need to disclose cryptocurrency holdings next year due to new accounting rules.
The Korea Financial Intelligence Unit (KoFIU) is also intensifying efforts to enhance compliance among virtual asset service providers. This move is part of the country’s broader strategy to provide a safer environment for crypto investors while combating rising crypto-related crimes. The new reserve requirements serve as an additional layer of protection for consumers and may influence other countries considering similar measures for their own crypto industries.
By FCCT Editorial Team
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