The Korean Blockchain Industry Association, formed with 33 South Korean exchanges, has revealed a set of rules for 14 of its exchanges.
- The first rule follows South Korean government’s anti-money laundering rules. It will combat the use of cryptocurrencies in money laundering by identifying and verifying the users’ identity and keeping their transaction history for 5 years.
- The second rule requires the exchanges to employ methods to pinpoint and detect fraudulent or suspicious transactions. In these cases exchanges will also need to decide the course of action required to tackle the situation.
- The third rule requires crypto companies to create “listing procedure committees” to observe every ICO token they plan to trade on the exchange. Additionally, members must have an equity capital of at least 2 billion Won. Financial documents (statements, audit reports, shareholder lists) should also be submitted to the organization.
- The fourth rule requires the exchanges to create an ethics charter which includes Non-Disclosure Agreements (NDAs) for employees while disallowing illegal transactions.
The rules will be finalized by May 31. Afterward, every exchange will submit the aforementioned documents before June 8 – their results will be disclosed within two or three weeks after the submission.
