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.
According to Korea JoongAng Daily, South Korea’s Financial Services Commission has amended its financial reporting rules to include the cryptocurrency sector.
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 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 from March 25. Existing virtual asset service providers in the country will have six months to comply with the new regulatory paradigm.
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 Title: Report all crypto transactions or face 5-year jail term in South Korea
Sourced From: cointelegraph.com/news/report-all-crypto-transactions-or-face-5-year-jail-term-in-south-korea
Published Date: Tue, 16 Mar 2021 08:58:38 +0000