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New requirements on crypto exchanges voted by South Korean lawmakers

Friday 6 March 2020 10:26 CET | News

South Korean lawmakers have voted to place tough new requirements on cryptocurrency exchanges, adding legitimacy to the country’s crypto economy.

The legislation, an amendment to Korea’s existing Financial Information Act, bolsters South Korea’s anti-money-laundering (AML) and counter-terrorism financing (CFT) framework for virtual asset service providers (VASPs), as reported by CoinDesk Korea.

The act requires all VASPs to register with regulators and partner with a single bank for deposits and withdrawals. Furthermore, virtual wallets need to relate to real-world bank accounts, both of which must be registered to a user’s actual name, to enable regulators to track the movement of illicit funds.

Additionally, VASPs must get their systems certified by the Korean Internet Security Agency. That could squeeze out Korea’s smaller players who cannot afford to take on the regulatory burden, CoinDesk Korea reports. South Korea’s president has 15 days to sign the amendment into law. Some provisions will take effect one year after it’s signed, and the full law will come into effect six months after that.
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Keywords: cryptocurrency exchanges, South Korea, AML, VASP, CFT, virtual asset service providers, virtual assets, regulators
Categories: DeFi & Crypto & Web3
Companies:
Countries: Korea, Republic of
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DeFi & Crypto & Web3






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