Korea’s regulator, FSC, has set new rules for virtual assets regarding illicit money trafficking mechanisms. Thus, the Law governing fiscal operations’ reports and usage of this data has been revised. Law says that a crypto license in South Korea can be issued to a firm defined as a virtual asset provider – VASP; it’s applicable to enterprises related to next-mentioned:
VASPs may act as a third party intermediary between customers or consumers and VASPs. Latter is possible if another participant has the status of a certified VASP meeting relevant AML requirements; access to data about the clients of such a party also need to be open.
Two main aspects for crypto business in South Korea.
It’s required that only the original name be used in operations with VASP clients. Additionally, certain extra points for opening an account are set:
The license for cryptocurrencies in South Korea issued to organizations not associated with VA exchange does not imply compliance with the rule regarding the use of the real name.
The FSC stated that more than two hundred cryptoexchanges operate in Korea, however, those working with crypto-assets and fiat come under Commission’s control. According to the data received, it is also stated that it is difficult for smaller companies to work in this niche, therefore, its consolidation is predicted soon.
Regulatory basis governing cryptocoins circulation made AML compliance a prerequisite. VASP license holders who do not follow these norms face severe restrictions and sanctions. New provisions say that organizations with crypto-currency exchange license in South Korea need:
If, after new norms got enforced, a firm that owns a crypto license in South Korea did not open an authorized account with a banking institution, it will be fined 50 million won, or the owner may be sentenced to five years in prison.
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