Fifty crypto companies based mostly in South Korea have applied for a license underneath the brand new Info Safety Administration System (ISMS), a government-backed certification that certifies corporations that meet stringent requirements of information safety and privateness.
Crypto laws are coming
The regulation takes impact in September 2021 and is among the first certifications for crypto companies in Korea. The nation enjoys one of many largest crypto buying and selling populations on this planet, with numerous younger adults making an attempt their luck within the crypto markets.
Nonetheless, with the area being notorious for its non-regulated nature and the seemingly endless quantity of scams, the Korean authorities has launched or is planning to introduce, numerous legal guidelines to raised regulate the native crypto scene.
The ISMS is one in every of these. As per a launch, the certificates assesses companies over numerous criterias—similar to general threat administration, entry management, server and safety administration, and others—to forestall untoward incidents and lapses which will price Koreans a good bit of losses.
And exchanges aren’t shying away from getting licensed both. 20 native exchanges have already acquired the ISMS certificates (together with UpBit and Kobit), whereas 30 others have utilized and are within the wait traces. Of the latter, eight functions are stated to be at the moment getting revised and processed.
The licensed exchanges—and others that get licensed at a later date—at the moment are presupposed to cooperate with native banks to offer details about crypto customers and all transactions are performed (from fiat) performed through their accounts.
This step is claimed to be a safety measure for attainable embezzlement and cash laundering.
In the meantime, Korean exchanges have began to delist altcoins that put them within the uncertain class forward of the laws.
Tickers like MARO, PCI, QTCON, and SOLVE confronted the hammer on some exchanges final week, with some comparatively greater names like BZRX getting delisted too. As a result of when the authorities come knocking, nothing is decentralized anymore.
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