The Korean Blockchain Industry Association has come up with a certain set of rules for 14 exchanges.The organization was formed in December of last year. They announced that exchanges Bithumb, Coinone, Upbit and Korbit were also members of the self-regulatory group.
The first rule follows South Korean government’s anti-money laundering rules.It will combat the use of cryptocurrencies in money laundering by identifying and verifying the users’ identity. Also transaction history for five years.
The third rule requires crypto companies to create “listing procedure committees” to observe every ICO token they plan to trade on the exchange.
The members must have an equity capital of at least 2 billion Won. Financial documents such as statements, audit reports, and shareholder lists should also be submitted to the organization.
The association introduced a security council which will evaluate all 14 exchanges. Jeon Jae-jin, the chairman of the association, said.
“We will establish the order of the domestically cryptographic money market through self-regulatory review. By providing a safeguard for the protection of users, we will contribute to ensuring the asset safety.”
Afterward, every exchange will submit the aforementioned documents before Jun. 8.
Customers would have to use their real names and verify their personal information on both cryptocurrency exchanges. Korean Blockchain Industry Association’s guidelines, exchanges will have a better chance to create a healthy environment for crypto users.