Stop complaining about the risk of the crypto market

[ad_1]

Source: Adobe / Difference

A prominent South Korean regulator has repeatedly called on banks to stop complaining about absorbing the risks of crypto exchanges and accept that any partnership they undertake with trading platforms is at their own risk. and perils.

As previously reported, South Korean banks have said with increasing certainty that they only think four Upbit, Bithumb, Penne and Coinone will pass the government-imposed September 24 deadline. After this date, all crypto exchanges will need to register with the Financial Services Commission (FSC), adopt anti-money laundering protocols (AMLs), obtain data security management accreditation, and find banking partners that offer wallet-type and real-name authenticated accounts if they wish to continue banking. function.

Banks have called on regulators to relax their stance after the FSC said banks would be required to assume 100% of the risk of taking over an exchange client. This would mean that in the event of an AML violation on a partner stock exchange, the bank would be held responsible, and the same could be true in the event of hacking or fraud.

Banks say the exchanges themselves should be condemned to accept blame, or another solution should be found – saying their overseas activities could be at risk if AML violations are detected on partner exchanges . Such concerns have led a growing number of large banks to simply dismiss the notion of partnering with trading platforms. Until now, Woori, KEB Hana, Kookmin and BNK Busan claimed they would not consider crypto-related activities – leaving only Shinhan, NongHyup and K-Bank yet to comment.

The imminent launch Start the bank has also been shy on the issue of crypto banking partnerships.

And FSC chairman Eun Sang-soo has called on the banks to stop talking about the matter. After saying earlier this month that “it would be good if the banks stopped raising this issue,” Eun doubled down on her sentiment yesterday.

KBS city Eun said:

“If the casinos are suspected of money laundering, [banks] are required to report this matter to [regulatory] Financial Intelligence Unit. Banks have all accepted this, so why are they still talking about cryptoassets? “

Eun added that banks shouldn’t complain about being charged with responsibility for exchanges, adding that risk management is “the bank’s job. [sector]. ”

Meanwhile, after the ruling Democratic Party said earlier this week that it was considering a measure that would delay a 20% levy on crypto trading profits, a second proposal to postpone the tax until 2023 is expected to be submitted. in the National Assembly.

Another MP – this time an MP from the ruling party – launched a private member’s bill in an attempt to postpone the introduction of the tax, meaning traders could continue to operate tax-free until well after the next general election.

Through Newsis, the deputy in question, Noh Woong-rae, said the move would “lighten the burden” on crypto investors and “support more stable growth in the crypto-asset market,” he added, ” is still in its infancy ”.

Another bill, coming from an opposition MP, has already been introduced in the House, with the Democratic Party’s new crypto task force saying it was discussing adding support to the motion. Consolidating the bill with Noh’s measure could potentially help the party save face – and increase support between the parties.
____
Learn more:
– South Korean crypto exchanges ready for legal fight amid threats of shutdown
– South Korean banks see crypto exchange commission fees increase tenfold

– Barclays Binance customers looking for apps, banks and alternative countries
– Citigroup Ready To Use Crypto As Goldman Sachs ‘Sinks Deeper Into’ Bitcoin

[ad_2]

Source Link