The Korea Federation of Banks (KFB) is reportedly planning to mandate that local cryptocurrency exchanges maintain a minimum reserve of 3 billion won (about $2.26 million). This move comes as local regulators are increasingly tightening oversight on these platforms, pushing for more robust rules around the listing and delisting of digital currencies to better protect consumers.
According to Korean media, these new rules are slated to kick in starting this September. Exchanges that have “real-name accounts” will be required to hold emergency funds ranging from $2.26 million to around $15 million. This fund is intended to act as a financial cushion in case of unexpected events like hacking incidents.
It’s worth noting that the $2.26 million minimum reserve requirement applies primarily to smaller exchanges. Big players like Upbit, Korbit, and Bithumb will need to hold at least 30% of their average daily deposits.
An official from an unnamed trading platform believes these new reserve requirements shouldn’t pose a challenge for any of the country’s crypto exchanges.
Beyond this, the KFB has further safety enhancements on the horizon, such as beefing up know-your-customer (KYC) procedures and introducing new authentication protocols for transferring funds. These additional measures are expected to be in place by the start of 2024.