South Korean government has decided to partially regulate cryptocurrency. All cryptocurrencies will be supervised by Financial Intelligence Unit. Cryptocurrencies will be under anti-money laundering directive. It is for the first time that the government shall regulate crypto exchanges
Korean Financial Intelligence unit guided by Financial Services Commission, held an anti-money laundering Committee meeting. Money laundering and terrorist financing issues were deliberated in the meeting
“We plan to include virtual currency exchanges under a direct supervision of the AML / CFT (Anti-Money Laundering/ Countering Terrorism Financing) system,” the committee was quoted by Maeil Business. Citing that “the legislation has already been introduced in the National Assembly,” the news outlet elaborated:
‘’This is the first time government agencies have said they will oversee virtual currency exchanges…When the bill is passed, virtual currency exchanges will be obliged to monitor the suspicious money-laundering transactions and report them to the FIU.’’
Currently, the FIU and FSS are having no say over cryptocurrency transactions. The regulators can track money laundering of cryptocurrency only via banks indirectly.
With the proposed changes, as indicated by the advisory group, “If a virtual cash trade does not agree to these commitments, the FIU or the endowed FSS [Financial Supervisory Service] will have the capacity to review the checking arrangement of the virtual money trade,” the publication conveyed
As indicated by the Hankyoreh, the FSS said that it will likewise fix its oversight of banks that provide virtual accounts to crypto exchanges. For instance, banks must report stores of in excess of 10 million won for each day or in excess of 20 million prevailed upon 7 days for crypto exchanges to the FIU as suspicious exchanges that could prompt illegal tax avoidance.
One of the biggest crypto trades in the nation, Bithumb, has as of late executed measures against illegal tax avoidance. A month ago, the trade hindered the exchanging of 11 nations and additionally fixed its check procedure for remote clients. The trade additionally brought down as far as possible for crypto brokers that don’t completely confirm their personality. The third biggest trade in the nation, Coinone, likewise said that it is actualizing comparable withdrawal limits for accounts not utilizing the genuine name framework.
Another significant exchange, Upbit, has a has set up anti money laundering framework teaming with Thomson Reuters. The exchange of late compensated six individuals for revealing false cryptographic money plans.