Four major cryptocurrency exchanges in South Korea – Bithumb, Upbit, Coinone as well as Korbit – report concerns with the
Sources say that banks have established more stringent norms in response to new FATF guidelines. To renew the bank account, the exchanges will need to comply with very strict anti-money laundering requirements in line with the current recommendations given by the inter-governmental body, the Financial Action Task Force (FATF).
Up until recently, the South Korean banks renewed accounts “without any objection every six months.” Yet under brand-new FAFT guidelines, financial institutions are “legally liable” for cash laundering activities carried out by their consumers. As such, they “start to place demanding requirements” on the cryptocurrency exchanges.
“In order to meet this standard, small and medium-sized trading sites that lack operating costs are likely to disappear from the market,” an anonymous authority in Korea told the information resource.