Fifty crypto companies primarily based in South Korea have applied for a license underneath the brand new Data Safety Administration System (ISMS), a government-backed certification that certifies firms that meet stringent requirements of knowledge safety and privateness.
Crypto laws are coming
The regulation takes impact in September 2021 and is among the first certifications for crypto companies in Korea. The nation enjoys one of many largest crypto buying and selling populations on the planet, with numerous younger adults attempting their luck within the crypto markets.
Nevertheless, with the house being notorious for its non-regulated nature and the seemingly endless quantity of scams, the Korean authorities has launched or is planning to introduce, a lot of legal guidelines to higher regulate the native crypto scene.
The ISMS is one in all these. As per a launch, the certificates assesses companies over varied criterias—akin to general danger administration, entry management, server and safety administration, and others—to forestall untoward incidents and lapses that will value Koreans a good bit of losses.
And exchanges aren’t shying away from getting licensed both. 20 native exchanges have already obtained the ISMS certificates (together with UpBit and Kobit), whereas 30 others have utilized and are within the wait strains. Of the latter, eight functions are stated to be at present getting revised and processed.
The licensed exchanges—and others that get licensed at a later date—are actually speculated to cooperate with native banks to offer details about crypto customers and all transactions are finished (from fiat) finished by way of their accounts.
This step is claimed to be a safety measure for doable embezzlement and cash laundering.
In the meantime, Korean exchanges have began to delist altcoins that put them within the uncertain class forward of the laws.
Tickers like MARO, PCI, QTCON, and SOLVE confronted the hammer on some exchanges final week, with some comparatively larger names like BZRX getting delisted too. As a result of when the authorities come knocking, nothing is decentralized anymore.
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