According to FSC, in total the first month of the work of cryptocredit services in South Korea, the volume of loans issued reached $ 1.1 billion. However, about 13% of crypto-bunkers were faced with the elimination of their assets due to sharp price fluctuations. The regulator allowed the exchanges to continue the execution of existing contracts, including payments and extension of loans, but forbade concluded new agreements.
FSC insists that cryptocuscal services are still in the “gray legal zone”, and this measure is necessary to protect retail investors from risks associated with unregulated financial products.
Exact details, such as lending limits or requirements for reserves, have not yet been disclosed. But, according to the FSC statement, the new rules will be aimed at increasing the transparency and safety of cryptocredit operations. They will oblige exchanges to introduce strict customer checking procedures (KYC) and compliance with the requirements for combating money laundering (Aml). In addition, the regulator plans to set the minimum standards to ensure liquidity and risk management in order to minimize the losses of cryptocurrencies.
FSC specified that the new rules for the provision of cryptocurred services will be launched in the coming months and will integrate such services in the legal field of South Korea. Until the new rules entered into force, unscheduled inspections are threatened by all violators of the regulator’s requirements.
Earlier, the Financial Services Commission of South Korea said that the national cryptocurrency market is not ready to inflict foreign investment due to the lack of requirements for combating illegal income laundering in local exchanges.
Source: Bits
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