[JOA] How will the Korea finance law reform for cryptocurrency affect coin exchanges?
With The act on Reporting and Use of certain financial transaction information(Korea Finance Act) passed the National Assembly on March 17 and will be enacted this month. This will bring major disruptions to the domestic cryptocurrency industry. Exchanges are hurriedly working to match the new regulations. More than a year remains before the law will be go into effect, but that's still a tight timeline for the industry to meet all the requirements specified in the amendment. #Details in the revision The act contains five core points: an official definition of cryptocurrency and virtual asset service providers (VASP); notification duties for related businesses; obligations to apply for an Information Security Management System (ISMS); requirements to use identity-verified accounts; and implementing know-your-customer (KYC) practices. #Only the big ones will survive The new provisions are expected to bring massive change to domestic exchanges. Small-sized businesses are on the verge of shutting down. It’s highly unlikely that commercial banks will issue identity-verified bank accounts for every player. Introducing ISMS will be a costly job. On the other hand, Korea has now become a more attractive market for foreign exchanges, in that the law reform has provided a legal framework for the industry as a whole and has eliminated some of the uncertainties. Several foreign exchanges reportedly received legal advice from domestic law firms to establish Korean offices. #Aprobit in the game Amid the turmoil, Aprobit has joined the game positioning itself as a global cryptocurrency. At the core of its strategy is transparency. The service was developed through an alliance which includes the global exchange Bitfinex, Hong Kong’s Genesis Block, Renrenbit and Applied Artificial Intelligence Laboratory. Its biggest differentiation point is that it will adopt Bitfinex’s joint order book system. A problem every new exchange encounters is liquidity shortages. Sharing the order book with Bitfinex, the world’s second-largest exchange by liquidity, according to Coin Market Cap, will resolve this issue. Previously, Upbit had also benefited from the same strategy. Another notable feature is Aprobit’s online community for crypto investors. Here, investors can share their trading strategy and will receive rewards according to other users’ assessments. The website is aimed at attracting user participation. The company plans to establish a security system and protection measures as well, in line with the law reform. It is in talks with Singapore-based data analysis firm Merkle Science to establish an anti-money-laundering system and said it will soon sign security contracts for users’ asset protection with a domestic security firm. The institutionalization for cryptocurrency has begun, but is still in its very early stage. At a time where the ecosystem is changing rapidly, launching a new exchange is not an easy decision. But crises also turn out to be opportunities. Aprobit’s fate solely depends on its capacity. Join.D is starting a live YouTube show which will be uploaded every Thursday 9 p.m. Aprobit has sponsored the series. ①The Korea finance act: What is to become of domestic exchanges? ②Bitcoin halving: How will it affect BTC prices? ③From Mt. Gox: The history of crypto exchanges ④The rise and fall of crypto exchanges ⑤All about Stablecoin 1 ⑥All about Stablecoin 2 ⑦Everything about Defi ⑧Everything about Fork ⑨Latest investment trends for crypto assets ⑩Price analysis and forecasts for alternative coins