Reported Cryptocurrency Exchange May Launch as Early as August

[Asia Economy Reporter Kwangho Lee] A cryptocurrency exchange approved by the financial authorities is expected to be announced around August. The financial authorities have stated that once they receive the operators' applications, they will promptly review them and reorganize the cryptocurrency market focusing on operators who submit early applications.

According to the financial authorities on the 30th, cryptocurrency operators must submit their applications to the Financial Intelligence Unit (FIU) of the Financial Services Commission by September 24.

Under the Act on Reporting and Using Specified Financial Transaction Information, cryptocurrency operators must have Information Security Management System (ISMS) certification to apply. Currently, there are about 60 cryptocurrency trading operators, and 20 of them have obtained ISMS certification.

Only four exchanges operate real-name verified deposit and withdrawal accounts: Upbit (Dunamu), Bithumb (Bithumb Korea), Korbit, and Coinone. These four major exchanges must undergo bank evaluations again and obtain real-name verification account certificates to file applications under the Special Financial Transactions Information Act.

The banks that currently provide real-name accounts are conducting due diligence on each exchange based on the guidelines of the Korea Federation of Banks.

It is reported that some exchanges will submit their applications to the FIU next month as soon as the due diligence is completed and the real-name verification account certificates are prepared. The FIU's review period usually takes about three months. The review results will be either approval or rejection. However, since the FIU plans to review as quickly as possible, the review period may be shortened.

Meanwhile, if existing operators continue business without submitting applications by September 24 or without approval, it will be illegal. Unregistered operations are punishable by imprisonment of up to five years or a fine of up to 50 million KRW. Even upon closure, exchanges must return deposits and cryptocurrencies to customers.

The financial authorities have decided to disclose the status of application submissions and approvals on the FIU website to proactively respond to the possibility of operators closing their businesses.

This content was produced with the assistance of AI translation services.