South Korean crypto exchanges will need to set aside $2.3 million in reserves from September.
South Korean cryptocurrency exchanges will need to set aside at least 3 billion won ($2.3 million) in reserves held in bank accounts from September due to consumer protection measures in the country’s industry. According to local media reports, major crypto exchanges including Upbit and Bithumb have started their activities to meet the new requirements.
Preparations started with the new directive
Leading cryptocurrency exchanges, including Upbit and Bithumb, are on track to comply with the requirements in guidelines issued by the Korean Banks Federation in July, South Korea’s local media News1 reported.
In its guide titled “Virtual Asset Real Name Account Operation Guidelines,” the Banking Association asked crypto exchanges to reserve at least 3 billion won, or the equivalent of 30 percent of their average daily deposits, to “fulfill their responsibilities.” In the event of a risky event, the size of such funds will be limited to 20 billion won due to the damage caused to users.
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