April 1, 2023

South Korean crypto-exchanges will oblige to disclose customer data

South Korea's Financial Services Authority (FSC) is preparing amendments to legislation to oblige suppliers Virtual Asset Services (VASP) to disclose users' personal data, reportsCoinDesk.

The changes are prepared for the law on the transfer and use of established information on financial transactions to prevent money laundering.The VASP law refers to "commercial entities that are involved in the purchase and sale of virtual assets," as well as providers of castodial services and brokers.

Under the new rules, VASP will be required to use accounts based on real names when making a financial transaction with the customer.In addition, VASP will have to open an account with a real name in a financial institution and obtain a certificateKorean Information Security Agency.

The proposal is aimed at complying with the requirements of the Financial Money Laundering Scheme (FATF) and should not be considered an attempt to include cryptocurrencies in the current financial regulatory regime, the FSC said.The new rules are expected to take effect on March 25, 2021.