With the exception of the 4 largest exchanges, almost all South Korean cryptocurrency exchanges may not be able to meet the required bank account requirements to stay in business.

Several South Korean exchanges are currently considering filing lawsuits against the government and financial regulators because the country’s cryptocurrency laws are unconstitutional, Business Korea news on Monday (June 28th).

The Law on Using and Reporting Certain Financial Transactions requires crypto exchanges to submit documents by September 24th showing that they have a real name account issued by a bank.

However, banks in South Korea are reluctant to offer real name services to cryptocurrency exchanges due to money laundering issues.

Several banks, including NH Bank and Shinhan Bank, conduct risk assessments on the Upbit, Bithumb, Coinone and Korbit exchanges.

However, no bank is willing to work with smaller exchanges. As a result, a large number of small exchanges are expected to be forced to close.

An exchange said:

“Now banks are refusing to initiate their exchange verification process for no apparent reason, and most exchanges have no chance to prove themselves. The Financial Services Commission must intervene immediately. “

Teacher

According to News.Bitcoin

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