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Experts say new South Korean crypto rules will create a monopolized market

Blockchain industry members claim that smaller-scale startups have struggled to forge partnerships with local banks in South Korea and are therefore unable to register under regulators’ new requirements.
South Korea is heading into a new period for its crypto industry, with stringent new rules coming into effect on March 25 that will require all cryptocurrency businesses to comply with new crypto reporting regulations and registration rules.As an article from the Korea Herald outlines, industry experts fear that the impact of the new measures — specifically, the incoming Specific Financial Transactions Act — will have damaging consequences for most domestic cryptocurrency firms. The act requires all virtual asset operators to seek official registration, for which they must show evidence that they are operating using real-name accounts at South Korean banks.While this is intended to prevent financial crimes such as money laundering, the vast majority of smaller-scale crypto firms have reportedly thus far been unable to forge partnerships with local financial institutions. Koo Tae-eon, a layer specializing in tech firms, told the Herald:“Since the promulgation of the law a year ago until now, so many crypto exchanges have tried to abide by the new law by getting real-name accounts from the local banks, but it didn‘t work. Even those that are equipped with an information security management system and have CEOs with no criminal records were not able to forge a partnership with banks.”Koo added that the new law, which fails to differentiate between crypto firms of different types and …
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