The Financial Intelligence Unit (FIU) of the Korea Financial Services Commission (FSC) disclosed a plan to directly regulate cryptocurrency exchanges and incorporate them into the regulatory system. Currently, FIU indirectly controls cryptocurrency exchanges through administrative guidance to banks.
A FIU official said on August 6 that the government will increase the transparency of cryptocurrency transactions by introducing the “cryptocurrency trading licensing system” proposed by the Financial Action Task Force (FATF).
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Lee Tae-hoon, director of FIU management and planning, said:
"The Reporting and Use of Certain Financial Transaction Information Act represents the FATF's international standard for the issuance of cryptocurrencies. If the National Assembly can pass amendments to this Act, it can effectively prevent money laundering through cryptocurrency."
Lee made the above speech at a public hearing held at the National Assembly office.
"If the amendment is approved by the legislators, we can improve the effectiveness of the regulation by shifting from indirect regulation currently conducted through commercial banks to direct supervision."
Regarding the management of exchanges, both the crypto exchange and the legal circle pointed out that if the regulator wants the bank to provide a real-name account to the cryptocurrency exchange, the first problem to be solved is to ensure that all exchanges have the same level of real name as the traditional financial company. Certification and anti-money laundering systems.
Following the release of the new rules by the FATF in June this year, which requires global cryptocurrency exchanges to share customer information, South Korea has already begun operations. Last month, Shinhan Bank, Korea's second-largest financial group, began to take stricter measures to analyze exchange accounts and check transactions, with the aim of completely abolishing domestic anonymous cryptocurrency transactions.
This time, the Korea Financial Services Commission has considered its regulatory attitude by considering direct supervision of the exchange.
Although South Korea banned the use of anonymous bank accounts to trade cryptocurrencies as early as January last year, it still cannot solve the problem completely. Many small cryptocurrency exchanges profit from the implicit provision of corporate banking accounts to investors. These types of accounts are also known as " honeycomb accounts " and the government has not yet resolved this thorny issue.