April 21, 2024

South Korea will start to fight crypto exchanges without registration

South Korea will start to fight crypto exchanges without registration

The South Korean government has amended the bill regulating the activities of crypto exchanges, according to which the leaders of unregistered platforms face imprisonment.

Amendment aims to stimulateExchange to the development of consumer protection systems and the adoption of international AML / CFT standards recommended by the FATF. First of all, to ensure the binding of virtual accounts served by banks, to the real personalities of users.

The new rules also simplify the registration procedure, requirementscertification of information management systemssecurity and receiving virtual accounts. In the future, for non-compliance with the rules, a fine of up to $ 42.5 thousand or imprisonment for up to five years is punished.

A ban on anonymous accounts was introduced last year, but since then only the Bithumb, Upbit, Corbit and Coinone exchanges have complied with all the registration conditions.

If in the process of agreeing a billIf innovations are left unchanged, then crypto-exchanges will control in the same way as traditional financial institutions. This is expected to stabilize the digital asset market.

However, the bill will still be considered by other state bodies, therefore, it can undergo serious changes.

Increased control is associatedwith increasing fraud in this area. The South Korean Ministry of Justice estimates that financial losses from cryptocurrency-related crimes committed in the country between July 2017 and June 2019 amounted to about $2.3 billion.