South Korea’s Financial Services Commission (FSC) said Wednesday it will issue financial penalties to exchanges that fail to follow rules designed to curb illicit cryptocurrency activity.
- In an announcement, the regulator said it will fine exchanges that fail to follow three regulations covering internal controls, information and data retention, and identity verification of virtual asset traders.
- Exchange operators are must retain information and data connected to any suspicious transactions, including those made using large amounts of fiat currency, as first reported by Korea JoongAng Daily.
- Fines for breaches range from 30 million to 100 million won (roughly $26,000–$88,000).
- Penalties may be reduced by up to 50% under some circumstances such as erroneous breaches, the FSC said.
- South Korea is also planning to bring in a cryptocurrency tax of 20% if gains exceed 2.5 million won (US$2,200).