South Korea’s Regulatory Stance on Encrypted Asset Real-Name Accounts

03/03/2023 07:30 • Tech Trends • 85 views

On March 3, the South Korean financial authorities decided not to expand the issuing institution of the encrypted asset real-name account required by the encryption exchange to outside the bank. People in the financial industry have put forward a plan to allow securities companies to issue encrypted asset real-name accounts, but the financial authorities of the country said that compared with banks, securities companies and other financial companies have relatively low ability to prevent money laundering. In addition, in the event of losses and closure of the exchange, the financial companies that open accounts may also have various burdens, so it is necessary to be responsible by institutions with sufficient financial capacity. In addition, allowing securities companies to issue real name accounts for virtual assets runs counter to the strict policy orientation, and due to the proliferation of exchanges that can trade Korean won, investment foam may occur.

The South Korean financial authorities rejected the proposal of “allowing securities companies to issue encrypted asset real-name accounts”

Analysis based on this information:

The South Korean financial authorities have announced their decision not to expand issuing encrypted asset real-name accounts beyond banks. This means that securities companies will not be allowed to issue such accounts in the country. The decision was made based on concerns about the ability of securities companies to prevent money laundering and their financial capacity in case of losses incurred by the exchanges.

The message highlights the strict regulatory stance of the South Korean government on encrypted assets. The authorities are concerned about potential risks posed by the proliferation of exchanges that can trade in Korean won, which could lead to investment foam. This rigid stance is reflected in the decision not to allow securities companies to issue real name accounts for virtual assets.

The cryptocurrency industry has been subject to regulatory scrutiny, and South Korea is at the forefront of efforts to regulate the sector. The country has implemented stringent regulations and guidelines to curb money laundering and other criminal activities associated with cryptocurrencies.

The decision not to allow securities companies to issue real name accounts for virtual assets is in line with the government’s commitment to maintaining a safe and stable financial system. The government recognizes that banks have stronger regulatory oversight and the necessary financial capacity to comply with regulations and compensate customers in the event of losses incurred by exchanges.

In conclusion, the South Korean authorities’ decision not to allow securities companies to issue encrypted asset real-name accounts underscores the importance of maintaining a robust regulatory framework for the cryptocurrency industry. A strong regulatory framework is necessary to protect investors and maintain the stability of the financial system.

This article and pictures are from the Internet and do not represent aiwaka's position. If you infringe, please contact us to delete:https://www.aiwaka.com/2023/03/03/south-koreas-regulatory-stance-on-encrypted-asset-real-name-accounts/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.