South Korea Revises Cryptocurrency Guidelines

South Korea’s Financial Services Commission or FSC revised virtual currency anti-money laundering or AML guidelines for cryptocurrency exchanges in the country.

The revision, proposed by Korea Financial Intelligence Unit or KoFIU, will address some insufficiencies related to the implementation of the guidelines. The revised guideline, approved by the FSC on June 27, will be effective from July 10.

The regulator has asked crypto exchanges to conduct customer due diligence and enhanced due diligence practices. The revised guidelines require financial companies to strengthen monitoring the non-trading accounts, to prevent crypto exchanges from using these accounts for collecting money or other illegal activities. They can conduct EDD if they find any sign of suspicious transactions.

The revision is also applicable to sharing information on overseas cryptocurrency exchanges.

The regulator has asked exchanges to perform sufficient background checks to ensure foreigners are not using local cryptocurrency exchanges to trade digital assets, and that criminals are not using personal accounts of individuals secretly to launder money.

It was on January 30 that the KoFIU introduced the virtual currency anti- money laundering guidelines. It is based on the results of the inspections on banks since setting the guidelines, that the KoFIU proposed the revision to the guidelines.

As per reports, the FSC has also instructed authorities to investigate the activities of banks Hana Bank, Nonghyup, and Kookmin, who provides banking services to the crypto exchanges.

by RTTNews Staff Writer

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