South Korean arm of crypto exchange Huobi has secured the backing of regulators in South Korea, following the decision to award Huobi Korea an ISMS certification. Huobi Korea is considered the second-largest digital currency exchange by transaction volumes globally. The decision means the South Korean arm of Huobi now complies with the Special Payments Act, which is set to come into force in Korea in March 2021. The new crypto regulations are supposed to be strict for crypto businesses.
Huobi received the ISMS certification from regulators.
The Korea Internet and Security Agency (KISA) granted the information security management system (ISMS) certification after Huobi satisfied the new act’s compliance criteria, which includes measures for anti-money laundering and Know-Your-Customer protocols. Korean authorities are introducing new measures designed to prevent unlawful use of cryptocurrencies, including rules designed to minimize money laundering, fraud, and other financial crimes. New measures include a requirement for crypto exchanges to report their customers’ real names to the Korean Financial Intelligence Unit, which must also be verified against other personal data, including resident registration numbers, for validity.
The certification gives Huobi a stronger basis for providing crypto services to institutional clients.
According to Park Si-deok, CEO of Huobi Korea, the certification gives the exchange a stronger basis for providing crypto services to institutional clients. The move comes against a challenging backdrop for operators in South Korea in recent months. Despite the strong moves from Huobi Korea, Binance KR recently announced it was shutting operations in the country, following low trading volumes through the exchange. The new ISMS certification and the Special Payments Act are set to introduce new compliance issues for crypto exchanges in the country, which require regulatory approval and licensing as a condition of trading in the country. As reported earlier, Bithumb’s CEO believes only a few crypto firms would be able to meet new regulations.