Key takeaways:
- South Korean regulators asked consumers to report any unlicensed cryptocurrency exchanges that are providing services to users in the region.
- Operators who persist in “undeclared business activities” will face consequences from the FIU, including notification of the investigative agency.
South Korean financial regulators asked consumers to report any unlicensed cryptocurrency exchanges that are providing services to users in the region in an update that was posted on December 4.
The Financial Intelligence Unit (FIU) of South Korea and the Digital Asset Exchange Association (DAXA) worked together on the project. Coinone, Korbit, Gopax, Upbit, Bithumb, and Coinone are five of the largest virtual asset exchanges in the nation and are included in DAXA.
According to regulation authorities, recipients of these reports are expected to identify domestic and overseas operators of virtual asset businesses that target Korean people and do not adhere to Article 7 of the Specific Financial Information Act.
First, DAXA will review the reports; the results will then be sent to the FIU, which will reply to the former to ascertain the operator’s status and whether notification is necessary.
Operators who persist in “undeclared business activities” will face consequences from the FIU, including notification of the investigative agency, according to a DAXA official.
Reports, according to DAXA, should include all relevant information about the company, any grounds for suspicion, and proof of any unreported business activity. They can be submitted using the company’s tip email address.
This happens at the same time as South Korea is getting more and more involved in the cryptocurrency space.
The Democratic Party of South Korea ordered on November 14 that, in the interest of “transparency,” any parliamentary candidates must reveal any cryptocurrency holdings they may have personally.
The Financial Supervisory Service (FSS) of South Korea declared in October that it is starting to write regulations to add to the Virtual Asset Users Protection Act, which was passed earlier in 2023. The FSS states that it is expected that the new rules will take effect in January 2024.
The Central Bank of South Korea said on November 23 that it would invite 100,000 people to test the upcoming Central Bank Digital Currency (CBDC) in 2024.
