The Financial Supervisory Commission (FSS) Friday denied the allegation that it had asked banks not to open accounts with cryptocurrency exchanges and customer accounts.

FSS officer Song Young-do said at the Blockfesta 2019 forum that it was the banks that took preemptive steps to prevent money laundering through cryptocurrency trading. He said banks took action out of their voluntary move to prevent money laundering.

He clarified the regulator’s position following questions why the financial regulator twisted the arms of banks not to open accounts with cryptocurrency exchanges and investors.

He hoped that the National Assembly would pass the bill, called the Special Finance Law. Once the bill becomes a law, it is the cryptocurrency exchanges that should prevent money laundering.

“Currently, banks are responsible for preventing money laundering. Thus banks took action not to open accounts with cryptocurrency exchanges,” he added.