25 Bitcoin exchanges in South Korea participate in self-regulatory plan, intending to learn from Japan's regulatory framework

The cryptocurrency self-regulatory initiative led by the Korea Blockchain Association has 66 member companies participating. It is reported that the association also plans to develop price index standards for mainstream cryptocurrencies.

25 Korean cryptocurrency exchanges participate in self-regulation

The Korea Blockchain Association has been guiding the self-regulation of cryptocurrency exchanges in South Korea. According to local media reports, the organization was officially established on January 16 this year, with a total of 66 member companies, including 25 cryptocurrency exchanges such as Upbit, Bithumb, Korbit, Coinone and Coinplug.

(Chin Dae-jae, former Minister of Information and Communications of South Korea)

According to inews24, the association's founding ceremony was held at the National Assembly Hall in Yeouido, Seoul. 58 member companies attended the meeting, and Min Byung-Doo, a member of the Democratic Party of Korea, and Kim Sung-tae, a member of the Liberty Party, also participated in the ceremony.

It is reported that Chin Dae-jae, former Minister of Information and Communications of South Korea, became the first chairman of the association. He said at the ceremony:

“Public interest in cryptocurrencies, represented by Bitcoin, has soared, and excessive speculative funds have flowed into exchanges. This is the real situation we are currently facing, and the association aims to serve as a communication channel between the government and the industry.”

Chosun detailed that the association plans to create an information system in the first half of this year that will make it easier for the public to understand virtual currencies, adding:

“The association also plans to develop a virtual currency price and transaction data index standard, with the goal of providing reliable information as standard transaction data.”

South Korean Exchange Self-Regulation

The association initially announced the self-regulatory measures in early December last year on the advice of regulators and the banking sector.

At that time, 14 major cryptocurrency exchanges in the country announced their participation in the initiative, in addition to Upbit. Upbit, now one of the largest cryptocurrency exchanges in South Korea, finally joined the blockchain association in January this year and announced its participation in the self-regulatory program.

Chosun said:

"I will launch a self-regulatory review in the first half of this year."

He further stated, “We will study Japan’s regulatory framework to ensure the stability of the entire ecosystem, and I will also take the initiative to create an environment where investors can learn how to use virtual currencies.”

According to Hankyoreh, the association’s self-regulatory measures include establishing minimum operating requirements such as the capital base of virtual currency exchanges, employee ethics supervision, and consumer protection measures.