Due to the implementation of strict regulations, Korean Banks are sitting confused on whether they should continue their partnerships with crypto exchanges or find another solution.
FIA in the field
As of now, the banks that have successfully confirmed their partnerships with crypto exchanges are Shinhan Bank, NongHyup Bank and K Bank, respectively. These partnerships will enable a much smoother and stable banking experience using crypto. Customers can use their original named bank accounts to trade any type of digital currency, ensuring a level of reliability and authenticity in the transactions performed.
This Act makes sure that every foreign or non-foreign transaction will take part in the minimalization of criminal activity and fake banking. Money Laundering and finically supporting terrorist organizations are still a problem which this new Act will try to battle. Using original bank names, things will be clear whether someone is involved in illegal asset storage or is trying to fund terrorists, ensuring a safe and sound banking system, safe from misconduct.
Some banking industry analysts have been claiming that banks might not take the risk of not implementing FIA into their systems because of the recent boom of Bitcoin skyrocketing the price of the asset to delicious new levels. Exchanges need some sort of protection in order to maintain functionality. The Act will be live in September after the six-month grace time is finished.
Some sources have also reported that banks are still being very careful about implementing the FIA because of the tougher sanctions they might have to deal with. Until now, lenders will relax for a few months, keeping track of the progress of the market in hopes of restarting their trade relations.
A few years back, two lenders from the government had released their real name exchange accounts, but due to the tough regulations, they denied the extension of the deal they were into. According to many money related guides, the banks are supposed to handle vulnerabilities and cyber-attacks they face. It is not someone else’s job to do that. More sources have indicated that banks will not take the risk and will take part in partnerships with crypto exchanges and the lenders who improve relationships.
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