Foreign cryptocurrency exchanges serving South Korean citizens must register with the regulator by September 24th. Otherwise, access to the sites will be blocked.
According to Yonhap News, the Korea Financial Intelligence Unit (KFIU) is pushing foreign crypto exchanges serving South Koreans to register with the regulator under the country’s new anti-money laundering laws.
Until September 24, all cryptocurrency exchanges trading in South Korean Won pairs must apply for registration with KFIU. The Financial Services Commission (FSC) announced that KFIU has sent a notification to 27 foreign exchanges.
The new rules also require exchanges to hold an information security certification from the South Korean government. Until now, no foreign exchange has received such a certificate. Exchanges that do not register with KFIU must cease operations in the country from September 25th.
“If they continue to operate without registration, exchange owners could be sentenced to imprisonment for up to five years or a maximum fine of 50 million won ($ 43,455),” the regulator said in a statement.
The new regulation also applies to local cryptocurrency exchanges. According to the new rules, which came into force in March with a six-month grace period, banks will assess the transparency of the cryptocurrency exchange, business risks and the risks of illegal transactions on the site.
In April, South Korean regulators said they plan to step up the fight against illegal transactions in cryptoassets amid the ongoing boom in cryptocurrency markets. In May, the South Korean government and the country’s police said they were working to improve a monitoring system for phishing websites aimed at stealing crypto assets from users.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
