New KYC and AML Compliance May Violate Privacy Laws in South Korea
The South Korean government is considering implementing KYC and AML compliance in the region, but legal experts are confused about the violation of privacy laws.
The state has the Personal Information Protection Act, according to which organizations cannot ask for any social security numbers. Financial institutions are also obligated to act under the rule, however, there are some exceptions to bigger transactions.
Korea ended the anonymous cryptocurrency trading in 2018, and now, the enforcement of digital verification systems is expected in March 2021. This verification requires social security numbers for cross-checking, which may contradict the Personal Information Protection Act, according to the law experts.
Legal experts of the cryptocurrency say that there are several aspects to look into before including AML-KYC compliance in the Virtual Asset Business Rights Act.
The regulatory authorities of the state believe that the issue must be discussed and resolved before enforcement. Let’s see where the debate ends in the country.