Crypto-frenzy in South Korea remains high, as another large bank prepares to offer banking services to cryptocurrency exchanges. BNK Busan Bank is investigating ways to align its operations with the relevant legislation that will be implemented immediately.
According to it, all banks will be forced to use the certification of the Information Security Management System (ISMS).
Respectively, domestic cryptocurrency exchanges will now be required to fully identify their customers, i.e. collect names and social security numbers, through the ISMS system already provided by South Korea’s major banks.
Exchanges such as Bithumb already have agreements with NH Nonghyup Bank to implement such a system. Also, other domestic companies such as Coinone, Upbit and Kobit have already entered into agreements with South Korean banks to comply with the law.
BNK Busan Bank, for its part, is considering offering its services to small and medium-sized exchanges, such as Copax and Gdac.
In general, in South Korea, there has been a wide-ranging debate across the industry about the difficulties of implementing the ISMS system. Heo Baek-young, CEO of Bithumb, made a revealing prediction last January for local cryptocurrency companies.
He believes that smaller companies will find it difficult enough to meet the requirements of ISMS certification. In fact, he believes there will be only four to seven exchanges, out of the plethora now in operation, that will be able to survive under the new regulation.
This has to do with the higher cost of services involved in complying with ISMS certification for small and medium-sized exchanges.