According to the latest reports, the Korea Federation of Banks has shared its concern over the rise in the trading of altcoins in the country. The Federation has raised the alarming citing phenomenal increase in the trading volumes of altcoins being carried out through several cryptocurrency exchanges.
The Federation has confirmed that the trades in question are being carried out by the exchanges based in South Korea.
One of the local media sources “The Korea Herald” has shared a report on the matter on Monday, May 10, 2021. According to the report, the Korea Federation of Banks is very concerned about the sudden rise in the altcoin trading volume in the country.
Therefore, it has instructed all banks in South Korea to start monitoring the transaction activities of accounts they have with cryptocurrencies. The Federation has demanded that the banks must start auditing the bank accounts that the exchanges have opened through them.
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The Federation has demanded that the banks must audit the trading activities of the exchanges’ accounts for altcoins.
The Korea Federation of Banks (KFB) has shared its high concern over the matter. The KFB has stated that such a high volume of trades in altcoins is alarming. They have stated that there are possibilities that the banks are letting cryptocurrency exchanges deal in altcoins that are full of risks.
The cryptocurrency exchanges may be involved in providing prohibited or unapproved services to South Korean users in terms of altcoins. Therefore, the KFB wants the matter to be looked into on an immediate basis so an explanation can be acquired on it.
The Korea Federation of Banks has stated that in order for an exchange to provide high safety and protection to users, it needs to keep its altcoins variety to as minimum as possible.
However, if a cryptocurrency exchange offers a huge list of altcoins, then it is not only putting itself at risk but the investments of the users as well.
Therefore, the South Korean banks need to investigate the matter and run audits to find the underlying cause of this. They need to establish whether a cryptocurrency exchange is offering altcoins that are deemed of very high risks.
According to news and reports, the South Koreans have started taking too much interest in Bitcoin (BTC) and altcoins in recent months. Many citizens in South Korea have even left their jobs as they have started generating decent incomes and profits from cryptocurrency investments.
In the past couple of years, South Korea has become one of the top cryptocurrency markets around the world. Almost every age group in South Korea is interested to invest their money in cryptocurrencies.
The cryptocurrencies in South Korea have been adopted on a large scale and on several occasions, the crypto-trading volume has exceeded that of SR stock exchange volume.