• The banks adopt a tough approach to crypto-related business.
  • The measures are prompted by new FATF guidelines.

Four major cryptocurrency exchanges in South Korea - Bithumb, Upbit, Coinone and Korbit - report issues with a renewal of their agreements with banks, the local media outlet The BChain reports. 

Sources say that banks have developed stricter norms in response to new FATF guidelines. To renew the bank account, the exchanges will have to comply with strict anti-money laundering requirements in line with the recent recommendations provided by the inter-governmental body, the Financial Action Task Force (FATF). 

Until recently, the South Korean banks renewed accounts “without any objection every six months.” But under new FAFT guidelines, banks are “legally liable”  for money laundering activities performed by their customers. As such, they “start to place demanding requirements” on the cryptocurrency exchanges.

“In order to meet this standard, small and medium-sized trading sites that lack operating costs are likely to disappear from the market,” an anonymous official in Korea told the news source.

It is worth noting that the South Korean regulator obliged the local cryptocurrency trading platforms to compensate their customers for losses even if they are not responsible for the financial damage.

Meanwhile, the FATF provided the final version of the guidelines on June 21. G20 countries supported the FATF’s crypto regulatory guidelines and called for fast and effective implementation during the summit in Osaka.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Only one resistance barrier ahead of Ethereum price may prevent it from surging to $1,000

Ethereum has experienced a significant rally in the past several weeks thanks to the upcoming Eth2 update. On top of that, Visa has just recently announced the support of USDC payments, which will work on the Ethereum network. 

More Ethereum News

Yearn.Finance price looks unstoppable as network continues growing and bulls target $32,000

YFI is currently trading at $29,500 and only faces one significant resistance at $29,890 before a potential massive breakout. The network's growth indicates that investors are highly interested in the digital asset which is on the verge of a breakout.

More Yearn.Finance News

Ripple Price Prediction: XRP could rise about 60% if the critical support level holds

Ripple's XRP has been losing ground since Tuesday. The third-largest coin with the current market capitalization of $28 billion hit the recent recovery tip at $0.68 and retreated to $0.62 by the time of writing. 

More Ripple News

VISA opens the Ethereum network to more than 60 million merchants as it integrates USDC

Visa looking to issue a USDC Credit Card after adding Circle Internet Financial, the developers of USDC to its Fast Track Program. Visa will not custody any USDC but will be working with Circle to enable customers to send and receive USDC payments.

More Cryptocurrencies News


Gold Weekly Forecast: XAU/USD tumbles to multi-month lows on risk flows, technical selloff

Bitcoin has lived through a roller-coaster week. The pioneer digital currency hit another multi-year high of $19,500 and got really close to the all-time high on Wednesday. 

Read the weekly forecast