2 months ago
Major South Korean banks are pushing for a alteration successful the country’s crypto policy, aiming to grow their quality to spouse with aggregate crypto exchanges.
This projected change, reported by section outlet MT, surfaced during an April 9 gathering organized by the Korea Federation of Banks alongside lawmakers from the ruling People Power Party.
According to the report, executives from 5 apical banks, including Woori Bank CEO Jeong Jin-wan, voiced beardown concerns astir the country’s existing one-bank-per-exchange framework.
Jeong stressed that this setup restricts lawsuit prime and places unnecessary strain connected the fiscal system. He besides noted that the existent attack limits user flexibility and hinders contention successful the banking sector.
Due to this, the banking main argued that allowing aggregate banks to enactment with a azygous speech would make a much resilient and user-friendly situation for retail and organization clients.
South Korea introduced the one-to-one rule successful 2018 to enforce anti-money laundering standards successful the crypto industry. The regularisation requires exchanges to enactment with a azygous banking spouse and mandates that users implicit real-name verification with the slope tied to their chosen platform.
However, critics present reason that the regularisation has outlived its usefulness.
Considering this, the bankers argued that the argumentation restricts idiosyncratic entree and slows innovation wrong the fiscal sector. They furthered that the rigid strategy forces exchanges to trust heavy connected a azygous banking partner, expanding operational hazard and reducing work options for users.
Notably, the argumentation reappraisal petition comes amid increasing concerns astir the systemic hazard of exclusive exchange-bank relationships.
In particular, a South Korean lawmaker precocious flagged potential vulnerabilities linked to Upbit, the country’s largest crypto exchange.
The lawmaker noted that 20% of deposits astatine K Bank—Upbit’s sole banking partner—come from the exchange. In theory, a disruption successful Upbit’s operations could trigger a liquidity situation astatine the bank.
If the authorities revises the policy, exchanges could take from a broader scope of fiscal partners. This could pb to improved services, amended hazard management, and much concern opportunities for some retail and organization players.
The station South Korean banks impulse argumentation displacement to broaden crypto speech ties appeared archetypal connected CryptoSlate.
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