Most of the crypto exchanges failed to comply with the guidelines of the South Korean regulators. Around more than half of the crypto exchanges failed to comply with the new policy of South Korea.
According to the recent new policy of the South Korea regulators, all the crypto exchanges should follow two main guidelines.
The first guideline is to get license certification from the ISMS (Information Security Management System) authority. And the second condition is to get a real name account facility through a perfect systematic tie-up with banks, so that all possible kinds of illegal activities can be stopped. If all these two requirements are not followed by the exchanges then they get shut down before 24 September.
At the present time, a total of 60 crypto exchanges are running. And out of these 60 exchanges, only UpBit is holding two of the requirements of the Korean regulators.
While Bithumb, CoinOne and Korbit met with the first requirement but failed to pass the second requirement. But it is expected that soon banks will overlook these exchanges to extend their tie-up contract with these crypto exchanges and can give facilities for the real name account services for these exchanges. And also these three crypto exchanges meet at its best under the compliance. And they are just needed to land on the AML compliance perfectly.
But the situation is very bad for those small crypto exchanges which are not even able to meet the first requirement to get certification of the ISMS.
The Financial Intelligence Unit (FIU) of Korea already ordered all the crypto exchanges that if they failed to meet the requirements then they should give notice to their users in advance of 7 days and return the funds.