The Korean Blockchain Industry Association announced a set of rules for 14 of its exchanges, such as Bithumb, Coinone, Upbit, Korbit and others.
The association, founded in December 2017, includes 33 South Korean exchanges. Its main purpose is to boost transparency and counter money laundering attempts, according to Yonhap News.
The first rule is aimed against the use of cryptocurrencies in money laundering operations by verifying the users’ identity and keeping their transaction history for five years.
Second rule commands that exchanges will have to employ methods to pinpoint and detect fraudulent or suspicious transaction activities.
The third rule requires crypto companies to create “listing procedure committees” to observe every ICO token they plan to trade on the exchange.
The fourth rule covers code of ethics by creating an ethics charter which includes NDAs for employees.
Moreover, iaddn order to improve security for customers, the association introduced a security council which will evaluate all 14 exchanges.
Besides the 14 members, a total of nine other companies are also looking to adhere to these new guidelines.
Earlier this month South Korea's Fair Trade Commission (FTC) has ordered 12 cryptocurrency exchanges to revise their adhesion contracts, which, it said, largely fail to provide adequate protection for consumers.
The watchdog said existing guidelines unfairly bar users from withdrawing their deposits. It further said the exchanges limit their services to users, and force the latter to shoulder all financial losses when they secede from membership.
By Ksenia Batanova