Eternity Law International News Crypto license in South Korea

Crypto license in South Korea

Published:
September 10, 2022

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:

  • virtual currencies exchange;
  • operations for VA sales and purchase;
  • VA management and keeping;
  • being intermediary or broker in conducting transactions with VA;
  • other envisaged activities.

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.

  1. VASPs are claimed to pass registration (KoFIU) prior to starting activities. Those firms that are already operating as VASPs must register in 6 months. Otherwise, they’ll get sanctions.
  2. Law introduced a new rule, according to which VASPs need to send all information about operations that exceed 1 million won. To this end, all supplier companies should implement common data exchanges solutions as soon as possible.

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:

  • KISA certificate on the functionality and effectiveness of the data security system;
  • firm needs to certify that it has not had any fines or similar charges in the previous 5 years;
  • the presence of fixation of information from customer operations;
  • procedure for assessing risks connected with combating illegal circulation of funds.

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.

AML policies for cryptocurrency license and business in South Korea

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:

  • carry out full verification of consumers, in particular, identification of data and verification of any other info when making operations;
  • prepare and submit reports in case of distrustful actions. This requirement must be met if there are adequate grounds to know that these assets are of illegal nature, or the agent is involved in unlawful operation;
  • if operation’s amount exceeds 20 mln won, the firm must submit an appropriate report containing all data about such a transaction.

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.

Obtain a VASP license in South Korea – become a member of a reliable market with cost-effective partners and a clear legislative framework. If you intend to open a business in this direction and have chosen this particular jurisdiction, please contact us. Our experts will help you understand all the nuances and provide many options for ready-made companies with licenses to sell.

Please contact us to get more information.

You can see our current offers in the categories “Cryptocoins and licensing of cryptocurrency operations”, “Ready-made companies”, “Banks for sale” and “Licenses for sale”.

You could be interested

Ready-Made Business in UK

UK is a very beneficial zone for opening a business. It’s a country with rich history, stabilized social environment and a high level of economic development. Country’s industry is concentrated in larger areas – oil refining industry enterprises, construction, agriculture and others. Thus, ready-made business in UK – stable opportunities for businesspersons to conquer the...

How to create a St. Kitts and Nevis Trust in 2023

Today, many investors create trust corporations to preserve their assets. But before creating them, it is necessary to decide on the place of enrollment of such an enterprise. At first  glance, create offshore trust in St. Kitts and Nevis is not the most obvious alternative. But if you are peeking for a place where your...

Cryptocurrency Exchange License in Labuan

Crypto exchange/digital assets exchange platform allows you to transfer electronic money and cryptocurrencies. This gives a convenient opportunity to exchange different currencies; for example, you can exchange cryptocurrencies for cryptocurrencies, cryptocurrencies for fiat and fiat for cryptocurrencies. Market participants can pay for cryptocurrencies by credit card, e-wallets and other methods of payment. It is possible...

ISO 14090: Climate Change Adaptation

Climate changes affect society in different ways, and this happens due to industrial revolution start. Further climate change scale depends on the quality of efforts to limit future emissions. Organizational effect associated with climate changes are physical, financial, regulatory and reputational, and they can be direct and indirect. Investors, customers and the media are increasingly...

Company registration in Ecuador

Ecuador is often used by foreign investors to optimize the tax system. In this country, the rates for tax duties are quite low: VAT is 12%, and income tax is maximum 30% – which is the lower threshold in Sweden. However, Ecuador is not offshore. The fiscal field of this jurisdiction is maximally favorable for...

ISO 22301: Business Continuity

If an emergency occurs in the company, it is necessary to be able to reduce damage amount and continue activities. ISO 22301 is designed to help companies preventing emergencies, be prepared for incidents, react quickly and recover. It is a practical basis for creating and managing continuity quality. ISO 22301 protects commercials from a myriad...
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof

Kyiv

Baseina street, 7

London

Grosvenor Gardens, 52

New York

1178 Broadway, 3rd Floor #3353 New York, NY 10001

Vilnius

Gediminas Avenue, 44A

Tallinn

Kesklinna linnaosa, Tuukri 19

Edinburgh

Lochrin Square, 1

Nicosia

Jacovides Tower, 5 floor

Riga

Esplanade, 7 floor

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard

Sydney

20 Martin Place

Porto

2609 Avenida da Boavista

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7