The South Korean government has decided to introduce legislation to regulate exchanges and abolish the ‘anti-money laundering guidelines for virtual currency.’
Last week, the Financial Services Commission, South Korean monetary authority, included the ‘anti-money laundering guidelines for virtual currency’ in the list of twenty-two administrative guidances to be repealed.
After the FATF (Financial Action Task Force) issued a to FATF AML guidelines for VASPs (Virtual Asset Service Provider), monetary authorities of each member jurisdiction have been introducing anti-money laundering laws on related service providers.
In Korea, efforts to regulate exchanges have been consistently made. Amendments to the Act on Reporting and Use of Certain Financial Transaction Information were proposed in 2018 and 2019. Each of these amendments includes regulatory measures on related services.
The FSC set the ‘anti-money laundering guidelines for virtual currency’ to prevent excessive speculations in the face of 2017 Great Boom of . According to the guideline, banks can decline or terminate any transactions if considered to have high risk of money laundering. Once the amendment to the Act on Reporting and Use of Certain Financial Transaction Information passes, exchanges will be required to provide their anti-money laundering analysis data to banks to maintain their accounts. Taking this measure would provide better exchange user protection and transaction transparency.
For more information, please refer to the article below.
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Published at Fri, 10 May 2019 04:59:07 +0000
