Bithumb, Coinone, and Korbit Real-Name Account Renewal Decision to Be Announced as Early as the 8th

Considering the Chuseok Holiday, the Actual Reporting Deadline Is 2 Weeks Away

[Asia Economy Reporter Minwoo Lee] Banks are expected to announce this week whether they will renew real-name account contracts with virtual currency exchanges such as Bithumb, Coinone, and Kobit.

According to industry sources on the 5th, NH Nonghyup Bank plans to announce by the 8th whether it will renew real-name verification account contracts with Bithumb and Coinone, and Shinhan Bank will do the same with Kobit. Both banks completed on-site inspections and risk assessments of the three virtual currency exchanges by the end of last month. As the Financial Intelligence Unit (FIU) reporting deadline for exchanges (September 24) approaches, it is expected that the contracts will likely be extended rather than terminated.

The key issue in the final negotiations is expected to be the strengthening of anti-money laundering measures by the exchanges. Since domestic exchanges are still not fully prepared to comply with the 'Travel Rule' imposed on virtual asset service providers by the Financial Action Task Force (FATF), banks are requiring the exchanges to provide plans to address this.

The Travel Rule mandates that when virtual assets are transferred between exchanges, the sending exchange must provide information about the sender and receiver to the receiving exchange. In South Korea, the amended Act on Reporting and Using Specified Financial Transaction Information, which includes the Travel Rule, was enacted on March 25; however, due to the time needed to build an industry information-sharing system, the regulation's enforcement has been deferred for one year until March 25 of next year.

Based on this, exchanges are expected to sequentially file virtual asset service provider reports following Upbit. Upbit, which accounts for about 80% of domestic coin trading volume, agreed to extend its real-name verification account contract with K Bank and completed its FIU report on the 20th of last month. The FIU is currently reviewing whether to permit Upbit's operations.

However, considering the Chuseok holiday, the practical deadline for exchanges to file stable reports is September 19. After the holiday, only two days remain, the 23rd and 24th, leaving roughly two weeks to meet the deadline.

Meanwhile, financial authorities and related ministries disclosed a list of exchanges that have not obtained the Information Security Management System (ISMS) certification, a necessary requirement for business registration, on the 25th of last month. They emphasized that even if these exchanges apply for ISMS certification immediately, they will not meet the business registration deadline, urging investors to take precautions in advance.