CEO Lee Seok-woo of Dunamu insisted on preparation of standards to prevent bad cryptocurrency exchanges filling South Korea’s cryptocurrency industry.
CEO Lee made such announcement after attending ‘Political Debate for Transparent, Safe, and Effective Cryptocurrency Design’, which was held at National Assembly Library’s main auditorium on the 10th, as a keynote speaker.
“Cryptocurrency exchanges play vital roles within cryptocurrency and blockchain ecosystems and there needs to be standards and qualifications regarding operation of a cryptocurrency exchange to separate good cryptocurrency exchanges from bad ones.” said CEO Lee.
CEO Lee divided roles of a cryptocurrency exchange into prevention of money laundering through cryptocurrencies, securement of tax data, securement of latest information such as current state of global projects and current trend of technologies, verification of cryptocurrency and blockchain projects, and protection of investors and consumers.
“While foreign countries require cryptocurrencies to protect themselves from money laundering and provide them with necessary responsibilities and rights, South Korea has limits in money laundering prevention as it only looks at transaction records through banks.” said CEO Lee regarding money laundering prevention. “Because cryptocurrency exchanges also do not have legal grounds, they have difficulties in identifying customers and managing money laundering prevention systems.
“Because South Korea’s cryptocurrency exchanges do not have any standard regarding their operation, it is easy for exchanges without necessary systems to spring up and cause problems.” said CEO Lee regarding why there are so many negative tags associated with South Korean cryptocurrency exchanges. “These problems can be solved just through standards and qualifications regarding cryptocurrency exchange operation just like foreign countries.”
CEO Lee also presented standards for cryptocurrency exchanges. These standards include conditions and requirements for registration of cryptocurrency exchanges, establishment of systems for consumer protection, money laundering prevention and internal control, protection of consumers’ assets, establishment of security system, establishment of committee, and moral ethics.
“Although there were concerns about social problems and side-effects when internet first appeared in early 1990s, South Korea has ultimately become an IT powerhouse after going through early struggles.” said CEO Lee. “While cryptocurrency industry is also going through its own struggles due to its early growth, people are concerned about South Korean Government’s strict sanctions impeding growth of cryptocurrency industry.” He also emphasized about creating a positive cryptocurrency ecosystem by preparing standards for cryptocurrency exchanges to secure national edge in relevant industries.
Staff Reporter Gil, Jaeshik | osolgil@etnews.com