As of March 25, companies involved with digital assets in South Korea are required to comply with anti-money-laundering requirements. This is stated on the FSC’s website.
At the March 17 meeting, the cabinet backed amendments to the Act on the Provision and Use of Information on Certain Financial Transactions, aimed at the cryptocurrency industry.
According to the document, virtual asset service providers (VASPs) must register before commencing their business. Existing companies have been granted a grace period — they can file the documents by September 24, 2021.
Providers must report suspicious transactions to the FSC, verify their customers’ identities, and undergo AML-compliance checks. Violations of the requirements can result in fines for companies.
In 2019, South Korea proposed tightening oversight of Bitcoin exchanges in line with FATF recommendations.
Around the same time, reports emerged about plans to levy a capital gains tax on digital-asset trades. The changes will take effect from 2022.
In March 2020, South Korea’s parliament approved the full legalization of cryptocurrency trading.
Subscribe to ForkLog’s news on Facebook!