South Korea’s financial regulator to revise fines regime for bitcoin exchanges

The Financial Services Commission (FSC) of South Korea proposed a new supervisory regime for virtual asset service providers (VASPs) in connection with the March 25, 2021, effective date of the amended Act on Reporting and Use of Financial Transaction Information.

According to the statement, the proposal introduces a new fines framework for VASPs, simplifies existing rules and improves the framework for reducing penalties to ease the operations of small financial firms.

Under the proposed regime, VASPs would be fined for non-compliance with transaction-monitoring and the registration of suspicious transactions.

The regulator proposed the possibility of cutting fines by up to 50%. Small firms could seek reductions beyond this cap.

The proposal will be opened for public consultation from March 11 to April 20, 2021, and will come into effect following an official notice.

Earlier, Korea’s largest crypto exchange Bithumb introduced restrictions on users from high-risk jurisdictions under its anti-money-laundering policy.

Earlier, Bithumb integrated a solution from the analytics company Chainanylsis to track suspicious transactions.

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