South Korea, which regulates cryptocurrencies earlier than other countries, imposes new conditions on exchanges. Officials, who prioritize investor safety, will demand collateral from cryptocurrency exchanges. Financial regulators require crypto platforms to keep at least 3 billion won in their bank accounts.
According to local media reports, exchanges operating in the country such as Bithumb and Upbit are already complying with the new rules. However, global trading platforms that want to be active in South Korea will also have to meet these conditions. The financial regulator demands at least one of the 3 billion won or 30% daily reserve requirements.
Capital market authorities want to prevent customer guarantees disappearing with this regulation. Cryptocurrency exchange FTX, which went bankrupt last year, left millions of aggrieved investors behind. Similar situations occurred on the debt platform Celsius.
South Korean authorities have set an upper limit of 20 billion won for exchange collateral.
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