{"id":9952,"date":"2021-07-22T16:54:20","date_gmt":"2021-07-22T16:54:20","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/south-korean-regulators-warn-dozens-of-foreign-exchanges-to-comply-with-new-rules\/"},"modified":"2021-07-22T16:54:20","modified_gmt":"2021-07-22T16:54:20","slug":"south-korean-regulators-warn-dozens-of-foreign-exchanges-to-comply-with-new-rules","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/south-korean-regulators-warn-dozens-of-foreign-exchanges-to-comply-with-new-rules\/","title":{"rendered":"South Korean Regulators Warn Dozens of Foreign Exchanges to Comply With New Rules"},"content":{"rendered":"

Overseas crypto exchanges marketing to Koreans will be blocked if they fail to comply with new South Korean regulations. The country\u2019s anti-money laundering body has sent a notice to a number of foreign trading platforms warning them a registration is mandatory in order to provide services to Korean residents. <\/strong><\/p>\n

Korean Financial Intelligence Unit Notifies Foreign Crypto Exchanges of Registration Obligations<\/h2>\n

Access to foreign-based cryptocurrency exchanges can be denied and the platforms may face criminal investigations in South Korea if they don\u2019t comply with the country\u2019s new regulations for the sector. One of the key requirements is to register with the Korean anti-money laundering agency, the Financial Intelligence Unit (FIU), by Sept. 24.<\/p>\n

To remind them of their obligations, FIU has sent out a notice to 27 entities with crypto trading operations targeting Korean nationals, the Financial Services Commission (FSC<\/a>) announced Thursday, quoted by the Korea Herald. The regulations adopted earlier this year also require exchanges to have information security certificates, but none of them has obtained one yet, officials said.<\/p>\n

The commission emphasized that foreign exchanges shall cease business operations in Korea as of Sept. 25 unless they register with the FIU. Unregistered activities will lead to penalties, including up to five years of imprisonment and a fine that can reach 50 million Korean won (over $43,000). In a statement sent to the parliamentary National Policy Committee, the FSC elaborated:<\/p>\n

Business activities carried out by overseas cryptocurrency exchanges targeting local customers without reporting to the Financial Intelligence Unit \u2014 an anti-money laundering unit under the Financial Services Commission \u2014 are illegal under the revised Act on Reporting and Using Specified Financial Transaction Information.<\/p>\n

<\/p>\n

Compliance Deadline Approaching With Few Exchanges Meeting New Requirements<\/h2>\n

South Korea\u2019s revised Special Funds Act took effect on March 25 but will be enforced in September after a six-month grace period. Another of its updated provisions requires cryptocurrency exchanges to cooperate with domestic banks on the issuance of real-name<\/a> accounts for their users. While the country\u2019s top four coin trading platforms \u2014 Bithumb, Upbit, Coinone, and Korbit \u2014 have secured partnerships with commercial banks, hundreds of smaller exchanges are facing closures<\/a>.<\/p>\n<\/p>\n

Korean banks fear exposure to money laundering, hacking, fraud, and other crypto-related risks<\/a>. Under the new rules, they\u2019ll be responsible for assessing a crypto platform\u2019s transparency and the possibility of criminal activity. Requests to be relieved of liability for offenses committed through the crypto exchanges they work with was reportedly rejected<\/a> by Korean regulators earlier this month.<\/p>\n

According to the Korea Herald, the FSC is planning to send guidelines regarding the new regulations to foreign crypto operators providing services in the country. \u201cIf overseas cryptocurrency exchanges serve local customers with the won-currency settlement, they must register with the FIU and comply with the government\u2019s guidelines to prevent money laundering,\u201d FSC Chairman Eun Sung-soo told lawmakers last week.<\/p>\n

South Korea\u2019s financial regulator is hardening its stance on foreign crypto service providers after authorities in a number of other jurisdictions, including Italy<\/a>, Lithuania<\/a>, the U.K., Japan<\/a>, Germany, and Poland issued warnings against Binance<\/a>, the world\u2019s leading digital asset trading platform. New regulatory measures regarding the exchange range from temporary suspension of operations to stricter reporting requirements, the Korean daily notes, revealing a growing global crackdown on the market.<\/p>\n

What\u2019s your opinion about the new South Korean regulations for cryptocurrency exchanges? Share your thoughts on the subject in the comments section below. <\/em><\/strong><\/p>\n

Bitcoin News
\nRegulation, Crypto, crypto exchanges, crypto traders, crypto trading, deadline, Exchanges, Financial Intelligence Unit, Financial Services Commission, fiu, FSC, korea, korean, Koreans, Money Laundering, real-name accounts, registration, Regulations, regulator, Regulators, requirements, rules, South Korea, south korean, Special Funds Act<\/p>\n","protected":false},"excerpt":{"rendered":"

Overseas crypto exchanges marketing to Koreans will be blocked if they fail to comply with new South Korean regulations. The country\u2019s anti-money laundering body has sent a notice to a number of foreign trading platforms warning them a registration is mandatory in order to provide services to Korean residents. Korean Financial Intelligence Unit Notifies Foreign…<\/p>\n","protected":false},"author":0,"featured_media":9953,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-9952","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/9952"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=9952"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/9952\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/9953"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=9952"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=9952"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=9952"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}