Financial regulators asked banks for information on the financial movements of cryptocurrency exchanges.
Financial regulators in South Korea are trying to determine how many cryptocurrency exchanges operate within the country's borders. In this context, in a statement made on May 5, regulators asked banks to provide information about their relationships with crypto money companies.
It was stated that this requested information was only provided by the four largest stock exchanges in South Korea so far, while the rest were only operating under surveillance so far.
It is thought that there are currently around 100 to 200 cryptocurrency exchanges in the country that are outside the scope of the government. The country, which wants to register all these companies, will be sentenced to imprisonment of up to five years on the grounds that it violates the revised Law on Reporting and Using the Specified Financial Transaction Information for all businesses that have not yet registered their activities until September 24.
Finally, the upcoming law reportedly will require cryptocurrency exchanges to establish appropriate security management systems, establish transparent partnerships with local banks, and submit reports with government officials.