According to South Korea'sasian economy"Reported that today the Korea Blockchain Association (KBA) held a press conference in Seoul to release a self-regulatory plan, and announced the review standards and regulatory requirements for South Korean digital currency exchanges. This is the first exchange review program in Korea, and it is scheduled to be implemented on the 18th.

Korea Blockchain Association press conference

KBA is currently the largest consortium of digital currency exchanges in South Korea. The participants include the chairman of the self-regulatory supervision committee of the Korean Blockchain Association and the information security chairman of the association. The main functions and purposes of the announced self-regulation plan are to:

Improve transparency, enhance industry stability, and protect investor funds through self-regulatory audits of South Korean digital currency exchanges.

At the press conference, the association stated that it will conduct a self-discipline review of the Korean digital currency exchange, and stipulates the association’s new members and member evaluation system, the amount of funds held by the digital currency exchange, financial situation, transparency, user protection programs, etc. aspects are stipulated. If the transaction requires more than 70% of the digital currency to be kept in a hard wallet, a new reserve of more than 2 billion won is required at the same time. In addition, the customer authentication system must be strengthened, and in the event of abnormal phenomena such as sharp increase and sharp drop, The exchange has a sound crisis management system. In addition, when launching a new currency, it is necessary to introduce the detailed information of the issuer and inform users of the price on overseas exchanges.

Previously, user funds were stolen frequently. For example, four members of the Coinest trading platform were arrested for stealing customer funds. Therefore, the security system of the exchange will be the focus of the association's review. The security audit of the exchange will include the review of servers, networks, e-wallet management, and personal information protection. The first screening will be held next month. It will be held from the 8th to the 31st.

The Korean Blockchain Association has been guiding the self-discipline of South Korean cryptocurrency exchanges. It has 66 members, 25 of which are digital currency exchanges, including Upbit, Bithumb, Korbit, Coinone and other major Korean cryptocurrency trading platforms.

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However, it should be noted that these regulations are only for members of the Korea Blockchain Association, not formulated by the government. Therefore, although the association has formulated a regulatory plan, the implementation results remain to be seen.

Previously, the association had asked 33 member exchanges including Upbit and Bithumb to conduct self-regulatory review, but 10 exchanges refused. An exchange official said:

I also don't know if the role of vetting and certification can be played by associations rather than governments.