Upbit CEO: Crypto Regulation is Necessary, But is Korea on Right Track?
2018年12月12日 - 7:42PM
ADVFN Crypto NewsWire
On December 10, Lee Seok-wu, the CEO of Dunamu, the parent
company of South Korea’s largest crypto exchange Upbit, said that regulation is important to establish
industry standards.
During a meeting with several members of the Congress and the
Financial Services Commission (FSC) hosted by Upbit, Bithumb, Gopax, Korbit, and Coinone, five of the biggest digital asset trading
platform operators in the local market, Lee said:
“The role cryptocurrency exchanges play in the cryptocurrency
and blockchain ecosystem is crucial and the industry with the
government have to establish regulatory guidelines to ensure that
the local market is operated by exchanges that meet high
standards.”
The Upbit CEO emphasized that the regulatory frameworks
implemented by the government to govern exchanges, especially in
the area of Know Your Customer (KYC) and Anti-Money Laundering
(AML) can be improved.
What Needs to be Improved?
According to Lee, the following areas of the cryptocurrency market and policies surrounding it need
to be addressed quickly, in the short-term:
- Low standards of security implemented by small exchanges
leading to hacking attacks
- Poor KYC/AML policies disallow crypto exchanges from monitoring
transactions
- Regulatory guidelines must be strengthened to ensure platforms
are on the same page
Speaking to high profile government officials, lawmakers, and
regulators, Lee explained that the cryptocurrency market is
characterized as an insecure and risky market to invest in due to
various hacking attacks and security
breaches small crypto exchanges fall victim to on a regular
basis.
Lee told government officials that unless industry standards are
established, minor digital asset exchanges that are solely focused
on maximizing profit will continue to emerge and damage the
reputation of the entire local market by rendering the efforts of
the good actors in the space like Upbit unnecessary.
On November 27, Upbit became the first crypto exchange in
South Korea to receive an approval from the
Korea Internet and Security Agency (KISA) for having world-class
security measures and protocols in place.
With the information security management system (ISMS) license
the exchange obtained, under existing regulations, the company is
recognized as a major information corporation that is approved by
the government.
But, all of the efforts Upbit, Gopax, Korbit, and other major
cryptocurrency exchanges have made in the past few months could
demonstrate little progress in recovering the public’s trust
towards the digital asset market if minor exchanges continue to
suffer security breaches by losing the funds of investors.
“Due to the lack of regulatory guidelines on cryptocurrency
exchange development, small businesses are aggressively launching
exchanges that do not have adequate internal management systems and
security protocols in place, negatively affecting the public image
of the local cryptocurrency market.”
Lee heavily emphasized that if the government provides a simple
regulatory framework that prevents small exchanges from opening
without sufficient security measures in place, most of the hacking
attacks can be avoided in the future.
Is South Korea on the Right Track?
South Korea remains as one of the few countries alongside
Switzerland, Singapore, Japan, the
U.K., and the U.S. that are actively
implementing new policies to facilitate the growth of its local
blockchain and cryptocurrency ecosystem.
If the government continues to communicate with both large and
small companies in the industry in an attempt to better regulate
the space, the country could compete against bigger markets and
potentially allure talent, investors, and startups into the local
sector.
Source:
CCN
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