Crypto Exchanges Gain Official Recognition In South Korea As Financial Institutions In a historic move, the government of South Korea has decided to officially recognize cryptocurrency exchanges as financial institutions. A local South Korean publication has reported that the South Korean financial authorities have decided to categorize crypto exchanges as an industry by the name of Cryptocurrency Exchange and Brokerage. Supported by local authorities, trading platforms will now be enabled to perform at a large capacity. The South Korean government has been mulling upon the idea of considering regulating the cryptocurrency sector by implementing practical regulations and policies. This initiative was decided upon especially to prevent security breaches and large-scale hackings from taking place. Post the Coinrail and Bithumb hackings in early 2018, the South Korean government has been quite vigilant. However, the local financial authorities are concerned that if the cryptocurrency market is regulated, the local public would assume that the government has legitimized the cryptocurrency sector. As a result of this thought, the regulation of cryptocurrency exchanges was postponed by the South Korean government. In a turn of events this week, the local publications reported that the South Korean government has reached a common consensus to recognize cryptocurrency exchanges as regulated financial business. This decision will help in creating a new industry that will be dedicated towards cryptocurrency trading platforms. On the flip side, this newly created regulatory framework is likely to have a negative bearing on both investors and trading platforms in the short-term. This is primarily due to the introduction of stricter customer verification policies, Know Your Customer (KYC), and Anti-Money Laundering (AML) policies. It may also need crypto exchanges such as Coinone, Korbit, and Bithumb to overhaul their internal management systems and significantly enhance their security measures in order to be in compliance with the newly introduced policies. As reported in CCN, local analysts are however hopeful that in the long run, this decision to legitimize the cryptocurrency sector will invite retail traders and large-scale institutional investors to enter the crypto market. The government has also planned to alter the existing regulations to facilitate decentralized applications. Must Read recommended by The post Crypto Exchanges Gain Official Recognition In South Korea As Financial Institutions appeared first on OWLT Market.