The South Korean financial regulator, the Financial Services Commission (FSC), plans to monitor the activities of cryptocurrency exchanges more closely.
The Financial Intelligence Unit (FIU) has stated that it will directly regulate cryptocurrency platforms, which are currently indirectly controlled through instructions given to banks,
Business Korea said in a statement.
For example, last year, the FSC changed the anti-money laundering rules applied to cryptocurrency exchanges, requiring
from local banks to tighten control over the accounts of cryptocurrency platforms.
Lee Tae-hoon, director of administration and planning at FIU, said that the Korean government will create a licensing system for cryptocurrency exchanges in accordance with the recent FATF recommendations. According to Lee, this step will increase the transparency of cryptocurrency transactions.
“If the amendment to the Law on the Reporting and Use of Certain Information on Financial Transactions, which reflects the international FATF standards, is adopted by the National Assembly, it will be possible to prevent money laundering using cryptocurrencies,” Li explained at an open hearing in the National Assembly.
Approving the amendment would make the rules more effective “by moving from the current indirect regulation through commercial banks to direct regulation,” Lee added.
According to the message
according to the blog of the cryptocurrency company Argos, the amendment may also lead to the introduction of a controversial rule on the transfer of information. Its essence is that exchanges should exchange information about the participants of the transaction when making transactions. This creates a serious problem for exchanges, since cryptocurrency transactions do not include identification data, the report says