Paradigm shift in South Korea: FSC approves banking support crypto exchanges

• The Financial Services Commission in South Korea reaffirms banking support for local cryptocurrency exchanges.
• “There exists no issue in banks providing virtual bank accounts to cryptocurrency exchanges,” Choi Jong-Ku, commissioner.

The cryptocurrency space in South Korea will fully enjoy support from the commercial banks in the country following an announcement by the commissioner of Financial Services Commission (FSC), Choi Jong-Ku. The commissioner has indorsed the government decision to allow cryptocurrency exchanges to open virtual accounts with banks.

Choi Jong-Ku said this following a recently concluded audit of all the state agencies along with commissioners. He reiterated that the only condition is that the exchange companies keep the KYC and AML systems in check. Choi stated:

“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.”

The exchanges in South Korea have come up with an exclusive system referred to as virtual bank accounts. These accounts give their customers a simple means which they can use to deposit and withdraw the local currency instantly. In addition to that, this system allows the customer to store the South Korean won on crypto exchanges. The confirmation by the commissioner of FSC means the crypto entities will not lack banking support.