In South Korea, the cryptocurrency craze in the banking sector remains hot as another major bank rushes to offer banking services to cryptocurrency exchanges. Busan-based BNK Bank has launched a program to visit rival banks that already offer this.
BNC Busan is searching among its competitors.
According to news portal Busan.com, the bank is looking at how these financial institutions handle crypto-currency exchanges in light of upcoming regulations.
As banks provide fiat currency services to cryptocurrency companies, Friday’s disclosed legislation will require them to use an information security management system (ISMS) certification.
Therefore, the digital strategy department and the money laundering prevention department of Busan BNK Bank are conducting an in-depth study on the operation of such a system and then proposing it for the future.
Proprietary cryptocurrency exchanges will have to register the real names and social security numbers of their customers through the ISMS system already offered by major South Korean banks.
Stock exchanges like Bitumen have already agreed with the NH Nonghyup Bank to set up such a system. In addition, other domestic companies such as Coinone, Upbit and Kobit have already signed agreements with South Korean banks to comply with the law.
Local media added that Busan-based BNK is considering offering its cryptocurrency services to small and medium-sized exchanges, such as Copax and Gdac, if the projects are successful.
Combating domestic small and medium-sized trading in accordance with legislation
At the same time, the difficulties of implementing an ISMS are widely discussed in the industry. As Bitcoin.com News Service reported on the 20th. According to the January 2021 report, Bithumb CEO Ho Baek-young made an apocalyptic prediction for local crypto-currency companies.
He believes that it can be difficult for small businesses to meet the requirements of ISMS certification. In fact, according to the executive, only four to seven scholarships will remain when the new rules take effect.
Heo’s words reflect complaints about the increased cost of ISMS certification for small and medium-sized businesses.
What do you think of the projects announced by BNC Busan Bank? Let us know your comments in the section below.
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