South Korea’s Crypto Regulatory Space To Become More Tightly Regulated With The Incoming Laws On Fin
Report said that South Korea’s cryptocurrency regulatory space is set to become even more tightly regulated with the incoming laws on financial reporting for crypto businesses in the country.
It has been reported according to Korea JoongAng Daily that South Korea’s Financial Services Commission (FSC) has amended its financial reporting rules to include the cryptocurrency sector.
However, this amendment mandates all crypto businesses, exchanges, asset managers, wallet providers, and custodial platforms, to file records of their transactions with the Financial Intelligence Unit.
The report said that the FIU is an arm of the FSC responsible for Anti-Money Laundering oversight across South Korea’s financial ecosystem. South Korea’s crypto reporting regulation will come into effect on March 25. Existing virtual asset service providers in the country will have six months to comply with the new regulatory paradigm.
Stricter regulations in South Korea adds jail terms for failure to comply with the new financial reporting rule. All crypto businesses are required to report transactions on their platform as regulators chase tax evasion. https://t.co/RbBmIk8I1L (Reporting via @OsatoNomayo) — Cointelegraph (@Cointelegraph) March 16, 2021
As part of the compliance protocols, crypto service providers in South Korea must adopt robust customer identification protocols. Also, any suspicious transaction must be flagged and reported to the FIU for further money laundering investigations. Virtual asset service providers in the country that fail to abide by the provision of the crypto reporting regulation before September 24 could face up to 50 million won ($44,000) in fines or five-year prison sentences for their principal actors. From March 25, new crypto service providers looking to establish a presence in the country will have to register with the FIU.
Thus, the incoming crypto reporting regulation is only the latest in a string of laws and guidelines related to cryptocurrency policing in South Korea.