South Korea’s Financial Watchdog Warns Foreign Exchanges Must Register in 2 Months
20 min ago•1 min read•Regulation
Foreign exchanges servicing clients in South Korea must register before two months’ time with the country’s financial watchdog or face blocked access and possible criminal inquiries.
According to a report by Yonhap News on Thursday, the Korea Financial Intelligence Unit (KFIU) is pushing for exchanges to register in line with the country's new anti-money laundering laws. An updated Financial Transactions Reports Act requires all crypto exchanges to register with the country’s regulators by Sept. 24 and obtain a certificate on information security. Yonhap cites officials of the Financial Services Commission who said thus far, no foreign crypto exchanges had obtained a certificate, echoing previous statements from its chair in April. South Korea has been pushing for tougher legislation against virtual asset service providers, including exchanges. The country does not recognize crypto as legal assets despite pushing ahead to collect tax generated by crypto revenue beginning 2022.