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Korean banks in quandary
Korean banks in quandary over crypto partnerships
Commercial banks here are in a quandary over whether to renew or sign partnerships with cryptocurrency exchanges in the face of ever-toughening pressure from financial regulators.

For now, three Korean banks ― Shinhan, NongHyup and K bank ― issue real-name accounts for digital currency exchanges they have partnered with. But they also have to renew these partnerships before 메이저놀이터 in line with the introduction of the Special Financial Information Act.

The act gives banks more autonomy in picking and choosing their exchange partners once the latter registers for business licenses with the Financial Services Commission (FSC).

But with regulators issuing warnings about the speculative nature of cryptocurrency transactions, the banking industry has found itself in a dilemma with regard to their position on digital assets.

Officials from the industry are reserved about enhancing their investments into the burgeoning cryptocurrency market.

"Many developed countries, such as the United States, are identifying the digital currency industry as one of the next major financial growth areas, but in Korea, we still need to take a wait-and-see approach to its growth potential due to lingering risks surrounding regulations," a banking industry source said.

"After the act takes effect, banks would be responsible for any possible financial fiasco incurred by their cryptocurrency exchange partners, and this comes as a major risk for banks at a time when they need to be wary about a variety of other issues regulators are looking at amid financial uncertainties brought on by the COVID-19 pandemic."

An official from one of the lenders in a partnership with a cryptocurrency exchange here said the bank does not have any immediate plans to cut ties to its exchange partner.

"Even if authorities keep issuing warnings, we have not received any direct or specific guidelines on the exchange partnership," the official said.

Last week, FSC Chairman Eun Sung-soo said his agency will not protect cryptocurrency investors. He also said virtual currencies were without inherent value. Some cryptocurrency prices have since experienced huge volatility following his verbal assessment of such transactions.

A cryptocurrency investor filed an online petition on the Cheong Wa Dae website demanding Eun's resignation, which has drawn more than 100,000 signatures in less than four days.
Korean banks in quandary
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Korean banks in quandary

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