South Korean financial regulators will begin to monitor cryptocurrency-related activities in the country, and other obstacles to transactions continue to emerge. In addition, one of the South Korean regulators codified the measures announced last year regarding the listing of privacy coins.
No major domestic exchanges can list privacy-centric crypto assets
According to the “Electronic Times” report, the Financial Intelligence Unit (FIU) of the Financial Services Commission confirmed that all privacy coins will be delisted from domestic cryptocurrency exchanges.
Regulators believe that the difficulty of determining the details of transactions will bring a high risk of money laundering through such cryptocurrencies.
Although FIU has just confirmed this, the local media first reported the measure in November 2020. FIU promises to prohibit the use of privacy coins such as monero (XMR) and zcash (ZEC).
Since then, South Korean platforms such as Okex have been forced to delist multiple privacy coins to align with anti-money laundering (AML) rules.
However, as of press time, none of the major cryptocurrency exchanges in South Korea has listed any privacy-centric cryptocurrencies. The financial intelligence unit is the supervisory agency responsible for handling anti-money laundering matters.
Report “abnormal” transactions within three business days
Moreover, according to the “United Times”, the department will require domestic exchanges to report and report any abnormal transactions on the platform within “three working days.” According to the FIU guidelines, the report should specify the value of the transaction in statutory Korean won (KRW).
Regulators hope to communicate policies through a protection management system, which will collect information such as bank data and social security numbers. In fact, the department hopes that banks are also responsible for making exchanges comply with anti-money laundering rules.
After eliminating a series of delays and discussions about who should supervise the entire encryption industry from a legal perspective, the South Korean Encryption Act will come into effect in March 2021.
In addition, the coronavirus pandemic has stopped discussions because other bills have been given important priority in the pipeline.
What do you think of this news before the deadline for the Korean cryptocurrency bill? Let us know in the comments section below.
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