South Korean Regulators Warn Dozens Of Foreign Currencies To Comply With New Rules – Bitcoin News Regulation

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Overseas cryptocurrency exchanges that trade with Koreans will be blocked if they do not comply with South Korea’s new regulations. country’s anti-money laundering agency has sent a notice to various foreign trade platforms warning them that registration is mandatory to provide services to Korean residents.

Korea Financial Intelligence Unit notifies foreign cryptocurrency exchanges of registration obligations

Access to overseas cryptocurrency exchanges can be denied, and platforms could be subject to criminal investigation in South Korea if they fail to comply with the country’s new regulations for the industry. One of the key requirements is to register with the Korean anti-money laundering agency, the Financial Intelligence Unit (FIU), before September 24.

To remind them of their obligations, the FIU sent a notice to 27 entities with cryptocurrency trading operations targeting Korean citizens, the Financial Services Commission (FSC) announced on Thursday, cited by the Korea Herald. Regulations adopted earlier this year also require exchanges to have information security certificates, but none of them have obtained one yet, authorities said.

commission emphasized that foreign currencies will cease their business operations in Korea from September 25 unless they are registered with the FIU. Unregistered activities will result in penalties, including up to five years in prison and a fine that can reach 50 million Korean won (more than $ 43,000). In a statement sent to the Parliamentary Committee on National Policy, FSC elaborated:

Business activities carried out by foreign cryptocurrency exchanges targeting local customers without informing the Financial Intelligence Unit, an anti-money laundering unit under the Financial Services Commission, are illegal under the revised Reporting and Reporting Act. Use of Information on Specified Financial Transactions.

deadline for compliance is approaching with some exchanges that meet the new requirements

revision of South Korea’s special funds law went into effect on March 25, but will take effect in September after a six-month grace period. Another of its updated provisions requires cryptocurrency exchanges to collaborate with national banks in the issuance of real accounts for their users. While the country’s four major currency trading platforms – Bithumb, Upbit, Coinone, and Korbit – have partnered with commercial banks, hundreds of small exchanges face closure.

Korean banks fear exposure to money laundering, hacking, fraud, and other cryptocurrency risks. Under the new rules, they will be responsible for assessing the transparency of an encryption platform and the possibility of criminal activity. Korean regulators reportedly rejected claims of being cleared of responsibility for crimes committed through the cryptocurrency exchanges they work with earlier this month.

According to the Korea Herald, FSC plans to send guidance regarding the new regulations to foreign cryptocurrency operators providing services in the country. “If overseas cryptocurrency exchanges serve local customers with the monetary deal won, they must register with the FIU and comply with government guidelines to prevent money laundering,” FSC President Eun Sung told legislators last week.

South Korea’s financial regulator is strengthening its stance on foreign cryptocurrency service providers after authorities in several other jurisdictions, including Italy, Lithuania, the United Kingdom, Japan, Germany and Poland, issued warnings against Binance, the platform. world’s leading digital asset trading company. new exchange regulatory measures range from temporary suspension of operations to stricter information requirements, the Korean newspaper notes, revealing a growing global crackdown on the market.

What’s your take on South Korea’s new regulations for cryptocurrency exchanges? Share your thoughts on the matter in the comment section below.

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Crypto, Cryptocurrency Exchanges, Cryptocurrency Traders, Cryptocurrency Trading, Expiration, Exchanges, Financial Intelligence Unit, Financial Services Commission, FIU, FSC, Korea, Korean, Koreans, Money Laundering, Real Name Accounts, Registration, Regulations , regulator, regulators, requirements, rules, South Korea, South Korea, Special Funds Law

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