South Korean crypto exchanges will need to set aside at least 3 billion won ($2.3 million) in reserves from September.
With a new decision, South Korean stock markets will have to reserve reserves from September. Reserve requirement of approximately 2.3 million dollars came to exchanges
Reserve requirement for South Korean exchanges
According to local media reports, platforms such as Upbit and Bithumb among major crypto exchanges are taking steps to meet the country’s new consumer protection measures. South Korean cryptocurrency exchanges will have to set aside at least 3 billion won ($2.3 million) in reserves they hold in their bank accounts from September, as the process of reviewing consumer protection measures in the country’s booming crypto industry accelerates.
According to local media outlet News1, leading Korean crypto exchanges such as Upbit and Bithumb are on track to meet the new requirements under guidelines issued by the Korea Banks Federation in July. The guide titled “Virtual Asset Real Name Account Operation Guidelines” states that crypto exchanges should set aside a reserve of 30 percent of their average daily deposit, or at least 3 billion won, in order to compensate users for losses in case of risky situations. The amount of these reserve funds is capped at 20 billion won.
New legislation passed in June in South Korea aims to protect crypto investors. This legislation gives the Financial Services Commission and the Bank of Korea the authority to oversee crypto operators and asset custodians. It also ensures that the authorities impose penalties in case of unfair trade of virtual assets.
Last month, the FSC (Financial Services Commission) announced new accounting rules that will require domestic companies to disclose their cryptocurrency holdings starting next year. These new rules also require crypto issuers to disclose information such as token details, business models, and internal accounting policies.
