Korean Federation of Banks Develops ‘Real-name Account Operation Guidelines for Virtual Assets’, Requires Exchanges to Reserve at Least 3 Billion Won in Capital

According to News1, the Korean Federation of Banks has consulted with South Korean financial authorities and virtual asset exchanges to develop the “Real-name Account Operation Guidelines for Virtual Assets”.

This initiative aims to enhance the protection of virtual asset users and prevent activities such as money laundering. As part of the guidelines, banks are requiring virtual asset exchanges to fulfill their obligation to compensate users for damages (such as those caused by hacking attacks or computer failures), and to maintain at least 3 billion won in capital reserves. In addition, the banks plan to carry out enhanced customer verification procedures for real-name account holders every year, implementing additional verification requirements for traceable transfers and restrictions on traceable transfers for long-unused accounts. The banks also plan to distinguish between limited and regular user accounts, imposing restrictions on their deposit and withdrawal limits. The banks have also established anti-money laundering standards and procedures related to real-name verification.