Korean Authority Encountered Crypto Exchanges Using Third Person Bank Accounts
The Financial Services Commission of South Korea detected 14 crypto exchanges in Korea, which are using affiliated Bank accounts and that are not under their own real name. FSC took action against them to fix this unfair way of operations soon.
On 28 July, South Korea’s Financial Services Commission revealed that there are many crypto Exchanges which are operating their crypto-fiat operations with the help of third person named Banks accounts or affiliated accounts of other exchanges or services.
According to the press release, FSC encountered 94 accounts run by 79 crypto asset exchanges. FSC warned to suspend these exchanges if they will not operate their operations under regulatory framework. Now such exchanges have time till 24 September 2021 to own self named bank accounts.
According to the rules of the South Korea crypto framework, all the crypto exchanges of South Korea should own bank accounts under their own real name. If any crypto exchange will use third party or services bank accounts than he can’t fascilate deposit and withdrawal services for their customers. Probably this is really a huge mistake that such types of Crypto exchanges are doing because these comes under the custody of their customers fund. And if anything will happen wrong then crypto Exchange & user can’t settle their problem directly. Instead they needed to go through third perty which own that bank account. So to overcome such problems, S. Korean rules restricted crypto Exchanges or any type of financial institutions to own their own registered named Bank account with full legal procedure.
Read also: Binance Exchange plans to get regulated all over the world
