On March 5, South Korea’s Nationwide Meeting passed a revised invoice on the reporting and use of particular monetary transaction data, specializi
On March 5, South Korea’s Nationwide Meeting passed a revised invoice on the reporting and use of particular monetary transaction data, specializing in the introduction of a allow system for cryptocurrency exchanges.
Accordingly, digital asset operators akin to cryptocurrency exchanges must report their operations to the Monetary Intelligence Unit (FIU) below the Monetary Providers Fee after acquiring “actual name-confirmed accounts” from industrial banks. Failure to report operations may end in as much as 5 years in jail or 50 million received ($42,000) in fines.
The invoice, to be carried out in March subsequent 12 months, requires current crypto exchanges to satisfy necessities for a real-name account and ISMS authentication, and to report their operations inside six months after the regulation’s implementation.
The Monetary Supervisory Service and the FIU will even strengthen the Anti-Cash Laundering (AML) system for digital belongings akin to cryptocurrency in accordance with the suggestions by the Monetary Motion Process Drive forward of the regulation’s implementation.
The revised invoice will pace up the preparation of sub-law rules, together with the scope of digital asset companies topic to AML necessities, and situations and procedures for issuing real-name accounts.
Solely the robust will survive?
To date, solely 4 massive cryptocurrency exchanges — Upbit, Coinwon, Bithumb and Korbit — have used real-name accounts. Most others have reportedly relied on honeycomb accounts, by which they obtained investor cash with their very own company accounts to assist buyer transactions.
Because the situations and procedures for banks to problem real-name accounts to crypto change change into stricter, small exchanges using honeycomb accounts will likely be pressured both to conform or exit the business.