TechFlow reports that South Korea's financial authorities will announce the "Bank Real-Name Account Issuance Standards," including the previous real-name account operation guidelines established by the Korean Bankers Association. According to these guidelines, cryptocurrency exchanges in South Korea that have already obtained real-name accounts from banks will be required, starting in September, to set aside reserves ranging from a minimum of 3 billion KRW to a maximum of 20 billion KRW. These reserves are intended to fulfill user compensation obligations in the event of incidents such as hacking attacks or system failures.
Under the guidelines, crypto exchanges must secure reserves equivalent to 30% of their average daily deposits, or a minimum of 3 billion KRW, whichever is higher. For instance, major exchanges like Upbit, whose 30% of average daily deposits far exceeds 3 billion KRW, will only need to reserve that minimum threshold amount. If 30% of an exchange’s average daily deposits surpasses 20 billion KRW, the reserve requirement will be capped at 20 billion KRW.
Although the operational guidelines were originally scheduled to take effect in January 2024, the "reserve accumulation" requirement will be implemented earlier, starting this September.
