Korean Government Approves Crypto AML Rule Set to Come Online Thursday

Crypto companies have until September to register with financial regulators.

Mar 22, 2021 at 6:39 p.m. UTC
Updated Sep 14, 2021 at 12:30 p.m. UTC

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.
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
First Mover Asia: Singapore’s Regulators Will Be Eyeing Local Crypto Companies After Terra Collapse; Bitcoin Rebounds

Terraform Labs, the Singapore-registered company behind the Terra protocol, doesn’t have a permanent office in the city-state; most major cryptos spent Sunday in the green.

Terraform Labs, the Singapore-registered company behind the Terra protocol, doesn’t have a permanent office in the city-state; most major cryptos spent Sunday in the green.

2
At Nationals Ballpark, Terra’s Bad Week Never Happened

Terra’s pricey Nationals sponsorship hasn’t made an impact on “Terra Club” workers and fans.

Terra’s pricey Nationals sponsorship hasn’t made an impact on “Terra Club” workers and fans.

3
The Collapse of UST and LUNA Was Devastating, but There Is Still Hope for Crypto

When a prominent stablecoin and the token that backs it failed, the broader ecosystem certainly was dealt a blow, but ultimately it is surviving.

When a prominent stablecoin and the token that backs it failed, the broader ecosystem certainly was dealt a blow, but ultimately it is surviving.

4
How Should Washington Regulate Stablecoins?

Plus a 101 comparison of custodial vs. decentralized stablecoins.

Plus a 101 comparison of custodial vs. decentralized stablecoins.