Established at the end of last year, the Korean Blockchain Association (KBA) proposed a set of rules for self-regulation designed to set standards for the operation of cryptocurrency exchanges. This is reported by CoinDesk.
In particular, KBA proposes that the minimum authorized capital of crypto exchanges should be at least two billion South Korean won ($1.8 million), and also oblige trading platforms to file financial statements and regularly pass audits.
New requirements will be applied to 14 local crypto exchanges, including Bithumb, Coinone, Gopax, OKCoin Korea and Huobi Korea. Among other things, these companies will have to store the history of user transactions for five years. Also, exchanges will have to implement systems for detecting suspicious transactions.
“We will bring order to the local cryptocurrency market through self-regulating control,” the KBA representatives noted. “By providing guarantees for the protection of users, we will help to ensure the security of assets.”
The KBA rules also oblige each exchange to create an ad hoc working group whose activities will focus on studying the new ICO tokens being prepared for listing, as well as on countering insider trading.
According to representatives of OKCoin Korea, the site is already “preparing to fulfill all the criteria and fully comply with the new KBA rules.” Corresponding set of measures was launched by the Coinone exchange, which “has already created an internal organization and a system designed to increase the transparency of cryptotrade.”
According to Yonhap, the rules will be finalized by the end of May. After that, each of the participants of the association will have to provide relevant documents before June 8.
Earlier it was reported that the Commission on Fair Trade of the Republic of Korea ordered 12 local crypto exchanges to renew contracts with customers.