Bithumb CEO Predicts Solely 4 to Seven South Korean Crypto Exchanges Will Survive New Guidelines – Regulation Bitcoin Information


The CEO of the South Korean cryptocurrency exchange Bithumb has made some predictions regarding the upcoming new rules for the national industry. In fact, the executive assumes there will only be between four and seven exchanges that will survive the new regulation.

Smaller businesses are unlikely to comply with new anti-banking and money laundering protocols in a timely manner

During an interview with Hanguk Hyungjae, Heo Baek-young made an apocalyptic prediction for the local crypto companies. He believes that smaller businesses may struggle to meet Information Security Management System (ISMS) certification requirements.

Almost 50 crypto exchanges are in operation in South Korea at the time of going to press. The upcoming rules will come into effect in March, but companies have been given a six-month grace period to comply with the required measures.

The amended Law on Special Information on Financial Transactions was approved by the Finance Committee of the National Assembly last November.

As part of the framework, crypto exchanges are required to follow a number of banking protocols, including linking customer accounts with individuals and their bank accounts verified by a local identification document.

Bithumb’s boss praised the new rules and believes his company is ready to meet all requirements on time. Heo pointed out the importance of differentiating yourself from “companies with bad intentions”. He said:

It is late to step up investor protection, but it is the right direction.

However, he still believes that many other platforms may struggle to comply with the new anti-money laundering (AML) protocols.

Is South Korea’s Anonymous Crypto Trading Coming To An End?

The new rules also designate the Financial Intelligence Unit (FIU) as the supervisory authority for overseeing the South Korean crypto industry, which is also trying to end anonymity in crypto trading.

Nowadays, Upbit, Korbit, and Coinone are considered major crypto exchanges in the country. Experts believe these companies will be able to meet the requirements of the new regulations.

On January 8, the South Korean government published an amendment to introduce a tax on profits from trading in cryptocurrencies. It will go into effect in February and profits from buying and selling cryptos in South Korea will be taxed at 20% from 2022.

What do you think of the words of the Bithumb executive? Let us know in the comments below.

Photo credit: Shutterstock, Pixabay, Wiki Commons

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