Korea’s 5th coin KRW market ‘Gopax’… Support KRW transaction from next week
As the virtual currency exchange ‘Gopax’ will support KRW transactions from the 28th of this month, the domestic virtual currency market is expected to be reorganized into a ‘big 5’ system. As a result, there are a total of five exchanges that support KRW trading services in Korea: Upbit, Bithumb, Coinone, Korbit, and Gopax.
On the 21st, the Financial Intelligence Unit (FIU) under the Financial Services Commission announced that it had decided to accept the change report of Gopax in consideration of the results of discussions by the virtual asset business reporting committee.
Accordingly, Gopax is expected to start operating the KRW market (KRW virtual currency trading) from 2:30 pm on April 28.
Lee Jun-haeng, CEO of Gopax, said, “We will do our best to create a fair competitive environment in the industry by providing reasonable fees and customized services by making further efforts to fulfill our obligations such as prevention of money laundering under the Special Act.”
According to the current Specified Financial Transaction Information Act (Special Act), an exchange that intends to provide a KRW trading service in Korea must secure a real-name deposit and withdrawal account with a bank. If this is not the case, only exchange services between virtual currencies can be provided. After continuous discussion with the bank to secure a real-name account, Gopax finally succeeded in signing a contract with Jeonbuk Bank on February 15th.
Although the number of won exchanges has increased by one, the proportion of domestic exchanges that have obtained VASP qualifications is still less than 20%. This is because banks are reluctant to issue real-name accounts for fear of financial accidents. If a financial accident occurs on a cryptocurrency exchange, both the exchange and the bank that issued the real-name account should be held liable.
As a result, the industry is arguing that the authorities should step in so that banks can easily issue real-name accounts. This is because, from the standpoint of the exchange, it is necessary to support KRW trading in order to attract many users and secure a stable profit base.
The industry expects that there will be two or three more exchanges that support KRW trading within this year. This is because the banking sector is also demanding that they enter into virtual currency-related services, and the Yun Seok-yeol government is showing a positive attitude to the promotion of the virtual currency industry. As exchanges to secure real-name bank accounts, Gdac, Kordax, and Hanbitco are mentioned.
An industry official said, “If this atmosphere continues as financial and IT-related companies are entering the virtual currency market one by one, two or three additional exchanges may be able to secure real-name bank accounts within this year.” As the number of exchanges that do so increases, competition over fees and other factors is likely to intensify,” he said.
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