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Institutional

Report: 4 Korean crypto exchanges facing stricter norms from banks post FATF guidelines

July 29, 2019, 7:55AM EDT

Four cryptocurrency exchanges in South Korea - Bithumb, Upbit, Coinone and Korbit - are reportedly facing stricter requirements for renewal of their accounts from banks in the country.

Local news outlet The BChain reported the news on Monday, saying that the exchanges need to renew their accounts with banks, but due to recent guidelines from the inter-governmental body, the Financial Action Task Force (FATF), banks are demanding stricter measures against money laundering.

Until now, banks, including the ShinHan Bank, the NongHyup bank, and the IBK, used to renew accounts “without any objection every six months,” per the report, but post FAFT guidelines, as banks are “legally liable” if money laundering activities are identified, they are “starting to place demanding requirements” on the exchanges starting this month.

“In order to meet this standard, small and medium-sized trading sites that lack operating costs are likely to disappear from the market,” an anonymous official from a “major trading site” in Korea told the news source.

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