Sout Korea has required that foreign cryptocurrency trading platforms register by September 24.
South Korea is tightening down on foreign cryptocurrency trading platforms. The FSC (South Korea) has advised 27 firms to discontinue servicing Korean people if they do not disclose or meet license requirements.
South Korea Toughens Foreign Cryptocurrency Trade Regulations
Sout Korea is tightening its approach to foreign cryptocurrency exchanges. The Korean’s FSC stated today that it had alerted 27 foreign VASPs operating within the borders of S. Korea to comply with reporting requirements.
According to a press statement, numerous unnamed crypto platforms and managers have been asked to give details to Financial Service Commission’s Financial Intelligence Unit by September 24.
The Financial Service Commission reminded platform operators that if they do not satisfy minimum reporting obligations by the deadline, they will be prosecuted.
Non-compliant cryptocurrency trading operators could receive up to 5 years in imprisonment or a 50 million Won fine, which is roughly $43.5k. The regulation is founded on South Korean legislation, which mandates (KYC) processes for all international financial transactions.
The Financial Service Commission has also encouraged digital currency users to examine if the international digital currency trading platform with whom they are trading has regulatory obligations in place.
Furthermore, the FSC intends to take steps like restricting access to particular platforms and collaborating with international law enforcement organizations and financial authorities to sanction non-compliant trading platforms.
One significant change in this approach is the increased regulatory scrutiny of digital currency trading platform transactions with South Koreans, along with compulsory trading platform KYC norms and licensing.
To combat money laundering and crime, S. Korean officials recently imposed additional limits on international remittances using crypto assets. After many questionable financial transactions between South Korean customers and Chinese-based cryptocurrency exchanges were detected by Korean institutions, the restrictions were developed.
Previously, the Financial Service Commission claimed that from 60, only four operating trading platforms in S. Korea had adopted real-name identification.
As per the reports, authorities throughout the globe are going forth with rigorous regulations for cryptocurrency trading. These laws are consistent with the impending FATF standards, which say that all digital currency trading platforms will be obliged to retain data on people who make digital currency transactions.