Crack Down on Faceless Crypto Users by Shinhan Bank of South Korea

If you ask me who the second highest asset holder in South Korea then without any hesitation I must reply in favor of Shinhan Bank of that particular state as they belong to advanced state of assets. The bank is accelerating its effort to do up cryptocurrency exchange’s accounts. The bank is very much willing to ban crypto transaction in the country. The bank wants to develop system with a view to curb all kinds of fraudulent activities and also to monitor activities.

Change in policy by the bank created a buzz among people living in that country. They dispatched another move on July 1 which was the revision of relevant processes and procedures. The bank is also intent to accelerate its staff scrutinizing and artificial intelligence system to help it spot suspicious activity. Korean banking system didn’t lock out crypto. With the issuance of some rules by the FSC or Financial Service Commission there made some drastically distinction between commercial banks and cryptocurrecncy exchanges. According to the guidelines, traders need to open a bank account under the exchange he clings to and that exchange also should be serviced by the same bank.

That means crypto traders will no longer be nameless in South Korea. Additional principles include general anti-money laundering issue, definition of suspicious transaction, with a source-of fund determination, a bank checklist is mandated and also foreigners are restricted to opening bank accounts for cryptocurrency trading. The newer rules of June 2018 suggest banks to begin the constant monitoring of the relevant accounts. It also recommends mingling of funds and looking into that institutions were keeping customer money and deposits for company operations separate. Banks are required to take KYC form and crypto-related deposits from its customers.

Being failure of maintaining as well as implementing anti-money laundering guidelines, Nonghyup Bank and Kookmin Bank came under the security of FSC. FSS, another domestic regulator, then inspected these two banks and Hana Bank.

There is a pressure for the sector as FATF or Financial Action Task Force will be demanding the sharinf of customer information by cryptocurrency exchanges. South Korea is likely to cling to the latter and the demands of that FATF. Kookmin Bank signed deals in 2019 to enhance its capabilities in digital currency asset management which withdrew from offering crypcurrency offering for a time. All the pressures at that time burdened to Shinhan Bank as a result of sudden closure of accounts by Kookmin. It’s not a frustrating issue to the exchanges by the news of Shinhan as the Korean Government allowed Bithumb, which is controlled by Singapore’s Blockchain Exchange Alliance (BXA), to use NH money only.

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