Korea's FSC head sees "no issue" with banks providing services for exchanges

31 Oct, 2018
by Will Heasman
News
Korea's FSC head sees no issue with banks providing services for exchanges

The commissioner of the financial services commission (FSC) has asserted that there is no reason why banks cannot provide accounts for domestic cryptocurrency exchanges.

According to Token Post, the FSC commissioner, Choi Jong-Ku spoke his piece at the states affairs audit, a conference held to review progress from various government agencies. Jong-Ku approved the notion of banks offering cryptocurrency exchanges financial services so long as relevant regulatory practices were observed:

 “There exists no issue in banks providing virtual bank accounts to cryptocurrency exchanges. If digital asset trading platforms have KYC and AML systems in place, there is no problem in issuing virtual bank accounts to exchanges,” said Jong-Ku

'Virtual bank accounts' refer to the system upon which many crypto exchanges offer deposits and withdrawals of South Korean won (KRW), a system which provides traders with further anonymity and privacy.

This recent announcement is in dramatic contrast to earlier in the year when the government all but banned banks from working with domestic exchanges to prevent money laundering and other illicit activities.

This statement from the commissioner comes just before the highly anticipated decision on whether or not to reverse the countries ban on ICOs.

Concerns over regulation are all that stand in the way of a potential reversal on the ICO ban. Lee Hye-hoon, chairperson of The National Assembly Special Committee on the 4th Industrial Revolution hinted towards the temporary use of existing IPO compliance in lieu of formal and tailored ICO regulation, a statement which seemed to incline that Hye-hoon was in favor of lifting the ban. The decision is expected in November.

Read more: South Korea's ICO ban could be lifted as early as November 

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