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On March 5, South Korea’s Nationwide Meeting handed a revised invoice on the reporting and use of particular monetary transaction data, specializing in the introduction of a allow system for cryptocurrency exchanges.
Accordingly, digital asset operators resembling cryptocurrency exchanges must report their operations to the Monetary Intelligence Unit (FIU) below the Monetary Companies Fee after acquiring “actual name-confirmed accounts” from business banks. Failure to report operations might lead to as much as 5 years in jail or 50 million gained ($42,000) in fines.
The invoice, to be carried out in March subsequent 12 months, requires current crypto exchanges to fulfill necessities for a real-name account and ISMS authentication, and to report their operations inside six months after the regulation’s implementation.
The Monetary Supervisory Service and the FIU may even strengthen the Anti-Cash Laundering (AML) system for digital property resembling cryptocurrency in accordance with the suggestions by the Monetary Motion Job Power forward of the regulation’s implementation.
The revised invoice will pace up the preparation of sub-law laws, together with the scope of digital asset companies topic to AML necessities, and situations and procedures for issuing real-name accounts.
Solely the sturdy will survive?
To date, solely 4 giant cryptocurrency exchanges — Upbit, Coinwon, Bithumb and Korbit — have used real-name accounts. Most others have reportedly relied on honeycomb accounts, by way of which they acquired investor cash with their very own company accounts to assist buyer transactions.
Because the situations and procedures for banks to subject real-name accounts to crypto change turn out to be stricter, small exchanges using honeycomb accounts will probably be compelled both to conform or exit the trade.
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