Cryptocurrency Regulations: The Good, The Bad And the Future
In June 2019, the Financial Action Task Force (FATF), an inter-governmental agency created to address and reduce international money laundering, terrorist financing, and other financial threats, released new guidelines for international banks.
These standards were also affirmed by the G20 in June. A collective agreement was made to apply the rules at the G20 meeting in Fukuoka, Japan and communicated by the Japanese Ministry of Finance in a .
Bad News for South Korean Cryptocurrency Exchanges
The first inklings of enforcement of these actions took place last week in South Korea. Four of the top cryptocurrency exchanges, Bithumb, Coinone, Korbit, and Upbit, ran into a bit of a while attempting to renew their agreements with South Korean banks.
Part of the new FATF standards includes stricter anti-money laundering requirements. Moving forward, all exchanges are required to comply with these requirements. The G20 summit recommended rapid implementation of all FATFA regulatory guidelines in participating countries.
This is a big change for South Korean bank policy on cryptocurrency exchanges.