The Korea Blockchain Association (KBA) has issued a vote of confidence to twelve domestic crypto platforms. According to the KBA, all 12 audit participants met the minimum requirements set by the Association.
The Blockchain Association's minimum requirements included:
- use of a cold wallet
- use of anti-money laundering (AML) regulations
- fulfillment of minimum asset requirements.
The KBA first announced an audit in April 2018 for fourteen Korean exchanges and exchanges. This audit is part of the KBA's mandate to increase transparency in the country's cryptocurrency trading market by eliminating money laundering, insider trading and other illegal activities.
The 12 platforms audited by the KBA includedBithumb, Huobi Korea, OKCoin Korea, Gopax, Hanbit, Korea Digital Exchange (Dexco), CoinOne, NeoFrame, UPbit, Coin Plug (CPDAX), Korbit and Coin Jest. Two platforms, Sunny7 and Komid, did not complete a full KBA audit.
The KBA Commission Chairman noted that there were still several security issues on the audited platforms, but he did not provide any additional comments on this issue or specify what security issues were identified during the audit.
The next step after the publication of the audit results is the opening of commercial bank accounts. Experts believe that new bank accounts for crypto platforms will help them legalize their activities and expand their customer base. However, Know Your Customer (KYC) may prevent new users from opening bank accounts. The South Korean government is strongly against anonymous trading and will insist on a strict process for identifying bank accounts holding cryptocurrency.
In general, the KBA conclusion, published against the backdrop of the government’s loyal attitude to the crypto industry and recognition of crypto exchangesas full-fledged financial organizations should have a positive impact on market sentiment.
Such an optimistic forecast is simply necessary after the June hacker attacks on two crypto platforms - Coinrail and Bithumb. Bithumb was one of the platforms involved in the KBA audit. Hackers stole $40 million and $31 million, respectively, from both platforms. However, Bithumb published a revised report on the damage, indicating that it had recovered almost half of the stolen funds..
The hack of little-known exchangers Coinrail coincided with a significant decline in prices, with the market losing $40 billion in market capitalization. The price of Bitcoin dropped $1,000 in a matter of hours from $7,600 to $6,700 in mid-June.
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