Amazon Stock Rebounds After Earnings as $200B Capex Plan Sparks AI Spending Debate 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Nasdaq Proposes Fast-Track Rule to Accelerate Index Inclusion for Major New Listings 
Missouri Judge Dismisses Lawsuit Challenging Starbucks’ Diversity and Inclusion Policies 
Silver Prices Plunge in Asian Trade as Dollar Strength Triggers Fresh Precious Metals Sell-Off 
Once Upon a Farm Raises Nearly $198 Million in IPO, Valued at Over $724 Million 
Oil Prices Slip as U.S.–Iran Talks Ease Supply Disruption Fears 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
AMD Shares Slide Despite Earnings Beat as Cautious Revenue Outlook Weighs on Stock 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns 
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility 
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm 
South Korea tightens cryptocurrency regulations, introducing a minimum reserve fund mandate for exchanges. The Korea Federation of Banks initiative aims to buffer against hacking and system failures.
The requirements stipulate that cryptocurrency exchanges with real-name accounts must hold a minimum reserve fund of at least 3 billion won (approximately $2.26 million). The regulations specifically apply to exchanges that facilitate transactions between the Korean won and cryptocurrencies, and they will come into effect starting in September.
The introduction of the reserve requirement aims to safeguard users in the event of unforeseen issues. It is a precaution against potential hacking attacks or system failures that could jeopardize the funds held within the exchanges.
To comply with the new guidelines, cryptocurrency exchanges must maintain reserves ranging from 3 billion to 20 billion won (around $2.2-$15 million). Alternatively, exchanges must hold either 30% of their daily average deposits or at least $2 million in reserve, whichever amount is higher. For example, larger exchanges like Upbit must maintain 30% of their daily deposit requirement.
In addition to the reserve requirement, the guidelines will enforce stricter Know Your Customer (KYC) norms and rules for fund transfers. These additional policies are scheduled to be implemented by January 2024, except for the reserve requirement, which will take effect in September.
Top exchanges like Upbit and Bithumb have expressed their readiness to comply with these new guidelines. However, coin-only exchanges face challenges in meeting the requirements due to a lack of capital. Since introducing the revised Specific Financial Information Act in 2021, coin-only exchanges have significantly declined trading volume.
The Financial Services Commission's Financial Intelligence Unit (FIU) has reportedly drafted the rules in response to requests from cryptocurrency exchanges for a clearer crypto framework. These new regulations aim to ensure the stability and security of the cryptocurrency market in South Korea.
Photo: Art Rachen/Unsplash
