The call for adequate crypto regulation has been on the rise lately. A lot of investors are wary of the crypto industry due to the low regulatory level of the industry. On the 10th of December, Lee Seok-wu said that digital currency regulation is very important. He said it is the key to establish industry standards.
The Role of Crypto Exchanges in the Digital Currency and Blockchain Space
Lee Seok-wu is the CEO of Dunamu. Dunamu is the parent firm of Upbit – the largest digital currency trading platform in South Korea. Lee also talked about the role of digital currency trading platforms and why they need to create industry standards. Lee discussed this during a meeting with some members of the Congress as well as the Financial Services Commission. The meeting was hosted by Bithumb, Upbit, Korbit, Coinone, and Gopax. These are the largest crypto exchanges operators in the local market.
While speaking at the meeting, Lee said: “The role digital currency trading platforms play in the blockchain and digital currency space is very important. The government and industry have to establish regulatory guidelines to make sure that the local crypto market is being operated by trading platforms with high standards.”
Lee also said that the regulatory frameworks established by the government to serve as a guideline to trading platforms can be improved. Some of the areas they could improve on include Anti-Money Laundering policies and Know Your Customer (KYC).
Areas in the Crypto Space that Need Improvement
The CEO of Upbit pointed out some areas of the crypto market, as well as the policies that govern it, which need immediate improvement. According to Lee, the things that need to be done include:
- Regulatory rules must be strong enough to ensure exchanges are under alignment.
- Poor Anti-Money Laundering and KYC policies disenable trading platforms from monitoring transactions.
- Low-security standards implemented by small trading platforms resulting in hacking attacks.
While speaking to government officials, regulators, and lawmakers, Lee said that the digital currency market is categorized as a risky, insecure market to invest in. This is as a result of numerous security breaches and hacking attacks small trading platforms encounter on a regular basis.
Bitcoin (BTC) Price Today – BTC / USD
According to Lee, until they establish industry standards, there will be a continuous emergence of small crypto trading platforms that mainly focuses on maximizing profits. These minor exchanges will damage the reputation of the crypto market and render the efforts of top platforms unnecessary.
Upbit is known for having world-class security protocols and measures. As a result, the trading platform became the first in South Korea to be approved by KISA (Korea Internet and Security Agency. The trading platform gained this recognition on the 27th of November. Upbit has also obtained the ISMS (information security management system) license. As a result, the firm is recognized as a top information firm which is approved by the government.
South Korea Is Actively Promoting the Growth of Its Local Crypto and Blockchain Space
There are just a couple of countries that are actively working towards the growth of the digital currency and blockchain ecosystem. South Korea is one of the few countries. Other countries in this line include Japan, the US, the UK, Singapore, and Switzerland. If the country continues in this manner, it could compete against larger markets and attract more startups, investors, and talents into the local sector.