Two major banks KB Bank and Nonghyp Bank Thursday announced that they took remedial actions on managing cryptocurrency accounts.
In public disclosures to the Korea Stock Exchange, the two banks confirmed that they received notices from the Financial Supervisory Services in April. The regulator pointed out that the two banks have not been in full compliance with the rules and guidelines in reporting the cryptocurrency accounts.
The regulator told Nonghyup to fully trace ‘suspicious’ cryptocurrency accounts. KB was told that it was sloppy in screening the identities of cryptocurrency investors.
The banks confirmed that they changed all processes in full compliance with the guidelines.
South Korea bans initial coin offering and regulators are closely monitoring who opened the accounts for cryptocurrency investments. Due to such a stringent guideline, banks are reluctant to open accounts with cryptocurrency investors.