The Korean Blockchain Industry Association, a body comprised of 33 cryptocurrency exchanges, announced today that it would carry out evaluations of its members to see whether they followed a set of self-regulatory measures designed to improve transparency in trading, Yonhap News has reported. The organisation said that 21 of its members, including South Korea’s leading exchanges Bithumb, Upbit, Coinone and Korbit, would undergo evaluations.
The measures were first announced in December, in response to the government’s plan to ramp up regulation on the nation’s booming cryptocurrency sector. The association also established a set of specific ethical codes for cryptocurrency trading platforms, including strict rules on insider trading and market manipulation, Yonhap notes.
The local authorities have been trying to curb cryptocurrency-related money laundering and speculation in virtual currency trading. Last month, the country’s financial watchdog imposed new rules, requiring banks and crypto exchanges to adopt a new system that allows people to make virtual currency transactions only via real-name accounts. The rules also do not allow minors under the age of 18 and non-Korean cryptocurrency traders to open trading accounts with local exchanges.
Last September, the regulators issued a ban on initial coin offering (ICOs) – the controversial fundraising mechanism that allows blockchain-related projects to issue and sell their own digital tokens.
Earlier this week, the head of the country’s Financial Supervisory Service (FSS) said that the government intended to support digital currency trading “if normal transactions are made”.