South Korea’s anti-money laundering safeguards for cryptocurrency businesses will come into effect Thursday after cabinet officials approved a series of amendments last week, according to the Financial Services Commission (FSC).
- Registered Virtual Asset Service Providers (VASPs) must file suspicious transaction reports with the FSC, subject themselves to compliance inspections and verify their customers' identities beginning March 25.
- Crypto firms engaging in custody, trading, sales, exchange and digital wallet services have a six-month grace period to register with the FSC before facing potential sanctions for non-compliance beginning in late September, FSC said.
- FSC first called for crypto-focused updates to the country's AML framework in November 2020 in an attempt to get on track with the Financial Action Task Force's crypto oversight regime.
- South Korea's National Assembly voted in favor of the update on March 5. Cabinet officials gave the law the green light on March 17.